One hundred units of inventory on hand at the end of the year are recorded at their cost of $10 each using LIFO. Current net realisable value is $11.00. What amount would be reported as Inventory on the balance sheet?

Question

Quizplus · Accepted Answer

Under LIFO, inventory is reported at the lower of cost or net realizable value. Since the cost ($10 each) is lower than the net realizable value ($11 each), the inventory is reported at cost. Therefore, 100 units at $10 each equals $1,000.00.

One Hundred Units of Inventory on Hand at the End