The following data refer to Montgomery 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 Montgomery 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 × $128) + (60 × $184) + (65 × $200) + (35 × 216) = $37,360
NRV: (45 × $152) + (60 × $176) + (65 × $168) + (35 × $212) = $35,740
Lowest total is NRV.

The Following Data Refer to Montgomery Company's Ending Inventory