Question

Exercise 6-12 X] your answer is incorrect. Try again. Wildhorse Co. uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are available at December 31. Item Units Unit Cost Net Realizable Value Cameras: Minolta 7 $179 $153 Canon 10 149 172 Light meters: Vivitar 13 136 108 Kodak 19122 128 Determine the amount of the ending inventory by applying the lower-of-cost-or-net realizable value basis. The ending inventory The ending inventory 6627) 6627

Answer 1

Solution:

Inventory at lower of cost or market (applied to individual items)
	Units	Cost per unit	Net realizable value per unit	Cost	NRV	LCNRV
Camera:
Minolta	7	$179.00	$153.00	$1,253.00	$1,071.00	$1,071.00
Canon	10	$149.00	$172.00	$1,490.00	$1,720.00	$1,490.00
Light Meters
Vivitar	13	$136.00	$108.00	$1,768.00	$1,404.00	$1,404.00
Kodak	19	$122.00	$128.00	$2,318.00	$2,432.00	$2,318.00
Total						$6,283.00

The ending inventory = $6,283