A Company Values Its Inventory at Net Realizable Value (NRV)

question 19

Multiple Choice

A company values its inventory at net realizable value (NRV) .It paid $250 for, and still has on hand, 10 units that it expects to sell for $400 less selling costs of $40.Which of the following statements is true related to these goods in this period?

• A)The company recognizes $400 of selling costs.
• B)The inventory is valued at $2,100.
• C)The inventory is valued at $2,500.
• D)The inventory is valued at $3,600.

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Definitions:

Solenoid

A coil of wire designed to create a magnetic field when an electric current is passed through it, often used to control valves or relays.

Relay

An electrically operated device that mechanically switches electric circuits.

Final Control Element

A device that directly manipulates a process variable to achieve a desired change, such as a valve or a motor.

Proportional Controller

A type of feedback controller that generates an output signal by multiplying the error between a desired setpoint and a measured process variable by a constant.