Never Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCNRV) basis in valuing inventories:
$\begin{array}{rrr}\text { Product }&\text { Cost }&\text { NRV }\
\text { A } & \$ 114,000 & \$ 120,000 \
\text { B } & 80,000 & 76,000 \
\text { C } & 160,000 & 162,000
\end{array}$

If Never applies the LCNRV basis, the value of the inventory reported on the statement of financial position would be

Question

Never Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCNRV) basis in valuing inventories: 
$\begin{array}{rrr}\text { Product }&\text { Cost }&\text { NRV }\
\text { A } & \$ 114,000 & \$ 120,000 \
\text { B } & 80,000 & 76,000 \
\text { C } & 160,000 & 162,000
\end{array}$

If Never applies the LCNRV basis, the value of the inventory reported on the statement of financial position would be

Quizplus · Accepted Answer

Under the LCNRV rule, inventory is valued at the lower of cost or net realizable value for each product. Product A is valued at $114,000 (cost), Product B at $76,000 (NRV), and Product C at $160,000 (cost). The total is $114,000 + $76,000 + $160,000 = $350,000.

Never Company Developed the Following Information About Its Inventories in Applying