Which one of the following inventories may not be valued for balance sheet purposes at the inventory's selling price less distribution costs even if it is above the cost of the inventory?

Question

Quizplus · Accepted Answer

Inventories are typically valued at the lower of cost or net realizable value (NRV) for balance sheet purposes. However, certain exceptions exist for agricultural, mineral, and similar products, which can be valued above cost when there is a reliable measure of NRV. Laptops for a computer manufacturer do not fall into these exception categories and thus cannot be valued at selling price less distribution costs if it exceeds the cost of the inventory.

Which One of the Following Inventories May Not Be Valued