Using the information below applies to Super Sporting Goods store, calculate the amount of inventory adjustment using the lower-of-cost-or-net realizable value method applied to the inventory on a major category basis.

Question

Quizplus · Accepted Answer

Football items:
Cost: (20 × $90) + (10 × $150) + (30 × $60) = $5,100
NRV: (20 × $75) + (10 × $60) + (30 × $75) = $4,350
Lowest is NRV.
Baseball items:
Cost: (40 × $30) + (50 × $120) = $7,200
NRV: (40 × $45) + (50 × $75) = $5,550
Lowest is NRV.
 11ee7640_e1e2_b6be_90da_3f137cb6c96c_TBCB1007_00

Using the Information Below Applies to Super Sporting Goods Store