Question

Codify Lighting has the following groups of inventory and net realizable value for its light fixtures (10 marks):

                                                Cost                                         NRV

Ceiling Lights                         $23,500                                 $18,100

Chandeliers                             17,500                                   15,100

Table Lamps                           19,300                                   21,800

Floor Lamps                            16,000                                   19,400

Desk Lamps                                8,700                                   6,200

Total Inventory                       $85,000                                 $80,600

Instructions

(a)        Determine the lower of cost and net realizable value of the ending inventory for Codify Lighting. (8 marks)

(b)        Prepare the journal entry required, if any, to record the adjustments from cost to net realizable value. (2 marks)

Answer 1

Answers caj LCNRU NRY $18,100 $23500 $ 18,100 ceiling lights chandelien 15100 15100 17500 19300 Table 21800 19300 lamps 16000 19400 16000 Floor Lamps 6200 6200 $700 best lamps $ 50, 600 $74,700 Total inventory $85000 $10,300 i by $10,300 cost of goods sold 1. To Inventory ($85000- $74,700)