Given the following data: $\begin{array}{|l|r|}
\hline \text { Ending inventory at cost } & \$ 23,600 \
\hline \text { Ending inventory at net realizable value } & 24,000 \
\hline \begin{array}{c}
\text { Cost of goods sold (before consideration of the } \
\text { lower-of-cost-and-net-realizable-value rule) }
\end{array} & 37,000 \
\hline
\end{array}$
Which of the following depicts the proper account balance after the application of the lower-of-cost-and-net-realizable-value rule?

Question

Given the following data: $\begin{array}{|l|r|}
\hline \text { Ending inventory at cost } & \$ 23,600 \
\hline \text { Ending inventory at net realizable value } & 24,000 \
\hline \begin{array}{c}
\text { Cost of goods sold (before consideration of the } \
\text { lower-of-cost-and-net-realizable-value rule) }
\end{array} & 37,000 \
\hline
\end{array}$
 Which of the following depicts the proper account balance after the application of the lower-of-cost-and-net-realizable-value rule?

Quizplus · Accepted Answer

The lower-of-cost-and-net-realizable-value rule requires inventory to be reported at the lower of cost or net realizable value. Since the cost ($23,600) is lower than the net realizable value ($24,000), the ending inventory should be reported at $23,600.

Given the Following Data Which of the Following Depicts the Proper Account Balance After