Question

Trillium Import has one of the largest selection of imported food products from Europe. Some of the food products are nearing the "best before date and as such the wholesale price that Trillium charges its distributors will have to be reduced to move the merchandise. Trillium reported the following cost and net realizable value for inventory at December 31: Product Item Units Unit Cost NRV Pasta Brand Decicco Bari Rustichella $101 $103 $92 $85 $136 $102 Olive Varieties Liguria Gaeta Kalamatas $188 $137 $98 $245 $137 $93 (a) Calculate the total ending inventory balance for pasta brands and olive varieties using cost and the lower of cost or net realizable value for each item. Total cost Lower of cost or NRV Pasta Brand Decicco Bari Rustichella Olive Varieties Liguria Gaeta Kalamatas Total

Answer 1

Lower of Total Cost cost or NRV $6,868 (68* $101) $5,780 (68* $85 Decicco Bari $7,313 $7,313 (71* $103) $5,428 (59* $92) (71 $103) $5,428 Rustichella (59* $92) Olive Varieties $20,116 Liguria $20,116 (107 $188) $16,577 (107* $188) $16,577 (121 $137) $5,487 (59* $93) $60,701 Gaeta (121 $137) $5,782 kalamatas (59 $98) $62,084 Total