The following data refer to Wards Company's ending inventory:
How much is ending inventory if the lower-of-cost-or-net realizable value rule is applied to the total inventory?

Question

The following data refer to Wards Company's ending inventory:
 How much is ending inventory if the lower-of-cost-or-net realizable value rule is applied to the total inventory?

Quizplus · Accepted Answer

Cost: (45 × $96) + (60 × $138) + (65 × $150) + (35 × 162) = $28,020
NRV: (45 × $114) + (60 × $132) + (65 × $126) + (35 × $159) = $26,805
Lowest total is NRV.

The Following Data Refer to Wards Company's Ending Inventory