Bargain Barn Clothing Company had the following inventory at December 31, 2019:
a. a. Determine ending inventory by applying the lower-of-cost-or-net realizable value rule to:
1. Each item of inventory
2. Each major category of inventory
3. Total inventory
b. Which of the lower-of-cost-or-net realizable value procedures from requirement A results in the lowest net income for 2019? Explain.

Question

Bargain Barn Clothing Company had the following inventory at December 31, 2019:
  a. a. Determine ending inventory by applying the lower-of-cost-or-net realizable value rule to:
1. Each item of inventory
2. Each major category of inventory
3. Total inventory
b. Which of the lower-of-cost-or-net realizable value procedures from requirement A results in the lowest net income for 2019? Explain.

Quizplus · Accepted Answer

The Answer of Bargain Barn Clothing Company had the following inventory at December 31, 2019:
  a. a. Determine ending inventory by applying the lower-of-cost-or-net realizable value rule to:
1. Each item of inventory
2. Each major category of inventory
3. Total inventory
b. Which of the lower-of-cost-or-net realizable value procedures from requirement A results in the lowest net income for 2019? Explain.

Bargain Barn Clothing Company Had the Following Inventory at December