Question

Swifty Corporation sells six different products. The following information is available on December 31: Units 45 Inventory item Tin Titanium Stainless steel Aluminum Iron Fiberglass 15 Estimated selling price $390 3880 1500 Cost per unit Net Realizable Value per unit $380 $385 3800 3760 1520 1450 270 215 310 225 60 60 30 220 300 325 225 30 230 When applying the lower-of-cost-or-net-realizable-value rule to each item, what will Swifty total ending inventory balance be?

Answer 1

Answer

	Units	Cost per unit	NRV per unit	Lower of Cost or NRV	Estimated ending inventory
Inventory item	[A]	[B]	[C]	[D = lower of 'B' and 'C']	[E = A x D]
Tin	45	$380	$385	$380	$17,100
Titanium	15	$3,800	$3,760	$3,760	$56,400
Stainless steel	60	$1,520	$1,450	$1,450	$87,000
Aluminum	60	$270	$215	$215	$12,900
Iron	30	$300	$310	$300	$9,000
Fiberglass	30	$230	$225	$225	$6,750
Ending Inventory balance					$189,150 ANSWER