Question

Swifty Corporation developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing inventories: Product Cost Market A $87000$91000 B 6100058000 C 122000123000 After Swifty Corporation applies the LCNRV rule, the value of the inventory reported on the balance sheet would be

Answer 1

the inventory value is $267,000

Step-by-step explanation:

As we know that the inventory is valued at cost or market whichever is lower

As seen from the given information, the lesser value for all products are

Product A $87,000

Product B $58,000

Product B $122,000

So, the total is

= $87,000 + $58,000 + $122,000

= $267,000

hence, the inventory value is $267,000