Re Company prepared the following analysis of its year-end inventory at June 30th:
$$\begin{array} { r r r r }
& & \text { Historical Cost } & \text { Replacement Cost } \
\text { Product } & \text { Quantity } & \text { per unit } & \text { per unit } \
\hline\text { A }& 17 & \$ 430 & \$ 499 \
\text { B } & 140 & 325 & 299 \
\text { C } & 38 & 75 & 69
\end{array}$$
Determine the lower of cost or market value for each product in Re Company's inventory and prepare the journal entry needed at year-end to value the inventory at LCNRV.

Question

Re Company prepared the following analysis of its year-end inventory at June 30th:
 $$\begin{array} { r r r r } 
& & \text { Historical Cost } & \text { Replacement Cost } \
\text { Product } & \text { Quantity } & \text { per unit } & \text { per unit } \
\hline\text { A }& 17 & \$ 430 & \$ 499 \
\text { B } & 140 & 325 & 299 \
\text { C } & 38 & 75 & 69
\end{array}$$ 
Determine the lower of cost or market value for each product in Re Company's inventory and prepare the journal entry needed at year-end to value the inventory at LCNRV.

Quizplus · Accepted Answer

The Answer of Re Company prepared the following analysis of its year-end inventory at June 30th:
 $$\begin{array} { r r r r } 
& & \text { Historical Cost } & \text { Replacement Cost } \
\text { Product } & \text { Quantity } & \text { per unit } & \text { per unit } \
\hline\text { A }& 17 & \$ 430 & \$ 499 \
\text { B } & 140 & 325 & 299 \
\text { C } & 38 & 75 & 69
\end{array}$$ 
Determine the lower of cost or market value for each product in Re Company's inventory and prepare the journal entry needed at year-end to value the inventory at LCNRV.

Re Company Prepared the Following Analysis of Its Year-End Inventory