Berry, Inc. has 6 computers which have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a net realizable value of $450. What amount should Berry, Inc. report for the computers at the end of the year?

Question

Quizplus · Accepted Answer

Berry, Inc. should report the computers at the lower of cost or net realizable value. The cost is $600 per computer, and the net realizable value is $450 per computer. Since $450 is lower, the total amount reported should be 6 computers x $450 = $2,700.