Data on the physical inventory for Lu Company as of December 31, 2019 are given below:
Assuming the Lu Company applies the lower-or-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 Lu Company as of December 31, 2019 are given below:
 Assuming the Lu Company applies the lower-or-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 × $2,000) + (18 × $1,200) + (15 × $1,000) = $60,600
NRV: (12 × $1,800) + (18 × $1,100) + (15 × $1,200) = $59,400
Lowest is NRV.
Electronics:
Cost: (20 × $1,400) + (25 × $1,800) = $73,000
NRV: (20 × $1,500) + (25 × $1,704) = $72,600
Lowest is NRV.
Total inventory value: ($59,400 + $72,600) = $132,000

Data on the Physical Inventory for Lu Company as of December