The following data are available for Wood Products Company for 2019: $\begin{array}{lr}
\text { Sales revenue } & \$ 400,500 \
\text { January } 1 \text { inventory at cost } & 110,600 \
\text { Purchases } & 275,000 \
\text { December } 31 \text { inventory at cost } & 98,000
\end{array}$
The current net realizable value of the inventory on December 31 is $93,500. Compute gross margin for Wood Products Company assuming the use of the lower-of-cost-and-net realizable value rule to value ending inventory.

Question

The following data are available for Wood Products Company for 2019: $\begin{array}{lr}
\text { Sales revenue } & \$ 400,500 \
\text { January } 1 \text { inventory at cost } & 110,600 \
\text { Purchases } & 275,000 \
\text { December } 31 \text { inventory at cost } & 98,000
\end{array}$
 The current net realizable value of the inventory on December 31 is $93,500. Compute gross margin for Wood Products Company assuming the use of the lower-of-cost-and-net realizable value rule to value ending inventory.

Quizplus · Accepted Answer

The Answer of The following data are available for Wood Products Company for 2019: $\begin{array}{lr}
\text { Sales revenue } & \$ 400,500 \
\text { January } 1 \text { inventory at cost } & 110,600 \
\text { Purchases } & 275,000 \
\text { December } 31 \text { inventory at cost } & 98,000
\end{array}$
 The current net realizable value of the inventory on December 31 is $93,500. Compute gross margin for Wood Products Company assuming the use of the lower-of-cost-and-net realizable value rule to value ending inventory.

The Following Data Are Available for Wood Products Company for 2019