Best Buy Clothing had the following inventory at December 31, 2019:

Required:
a. Determine ending inventory by applying the lower of cost or net realizable value rule to:
1. Each item of inventory
2. Each major category of inventory
3. Total inventory
b. Which of the LCNRV procedures from requirement A results in the lowest net income for 2019? Explain.

Question

Best Buy Clothing had the following inventory at December 31, 2019:
  
Required:
a. Determine ending inventory by applying the lower of cost or net realizable value rule to:
1. Each item of inventory
2. Each major category of inventory
3. Total inventory
b. Which of the LCNRV procedures from requirement A results in the lowest net income for 2019? Explain.

Quizplus · Accepted Answer

The Answer of Best Buy Clothing had the following inventory at December 31, 2019:
  
Required:
a. Determine ending inventory by applying the lower of cost or net realizable value rule to:
1. Each item of inventory
2. Each major category of inventory
3. Total inventory
b. Which of the LCNRV procedures from requirement A results in the lowest net income for 2019? Explain.

Best Buy Clothing Had the Following Inventory at December 31