Using the information below,determine the ending inventory value applying the lower of cost and net realizable value. $$\begin{array} { | l | c | r | r | }
\hline \text { Inventory Item } & \text { Quantity } & \text { Cost } & \begin{array} { r }
\text { Net Realizable } \
\text { Value }
\end{array} \
\hline \text { Cutlets } & 200 & \$ 12 & \$ 14 \
\hline \text { Chops } & 400 & \$ 16 & \$ 14 \
\hline \text { Shanks } & 300 & \$ 15 & \$ 12 \
\hline
\end{array}$$

Question

Using the information below,determine the ending inventory value applying the lower of cost and net realizable value. $$\begin{array} { | l | c | r | r | } 
\hline \text { Inventory Item } & \text { Quantity } & \text { Cost } & \begin{array} { r } 
\text { Net Realizable } \
\text { Value }
\end{array} \
\hline \text { Cutlets } & 200 & \$ 12 & \$ 14 \
\hline \text { Chops } & 400 & \$ 16 & \$ 14 \
\hline \text { Shanks } & 300 & \$ 15 & \$ 12 \
\hline
\end{array}$$

Quizplus · Accepted Answer

For each inventory item, we apply the lower of cost and net realizable value (NRV) principle:- Cutlets: Cost is $12, NRV is $14. Use cost ($12) because it is lower.- Chops: Cost is $16, NRV is $14. Use NRV ($14) because it is lower.- Shanks: Cost is $15, NRV is $12. Use NRV ($12) because it is lower.Calculating the total:- Cutlets: 200 units * $12 = $2,400- Chops: 400 units * $14 = $5,600- Shanks: 300 units * $12 = $3,600Total ending inventory value = $2,400 + $5,600 + $3,600 = $11,600.

Using the Information Below,determine the Ending Inventory Value Applying the Lower