Data on the physical inventory for Grand Home Company as of December 31, 2019 are given below:
Assuming the Grand Home Company applies the lower-of-cost-or-net realizable value method on the inventory by major category of items, the inventory balance reported on the Balance Sheet as of December 31, 2019 will be:

Question

Data on the physical inventory for Grand Home Company as of December 31, 2019 are given below:
 Assuming the Grand Home Company applies the lower-of-cost-or-net realizable value method on the inventory by major category of items, the inventory balance reported on the Balance Sheet as of December 31, 2019 will be:

Quizplus · Accepted Answer

Appliances:
Cost: (12 × $1,500) + (18 × $900) + (15 × $750) = $45,450
NRV: (12 × $1,350) + (18 × $825) + (15 × $900) = $44,550
Lowest is NRV.
Electronics:
Cost: (20 × $1,050) + (25 × $1,350) = $54,750
NRV: (20 × $1,125) + (25 × $1,278) = $54,450
Lowest is NRV
Total inventory value: ($44,550 + $54,450) = $99,000

Data on the Physical Inventory for Grand Home Company as of December