Fundy Corp If Fundy Values Their Inventory at the Lower of Cost

question 5

Multiple Choice

Fundy Corp.has the following information about their inventory at year-end: $\begin{array}{lrr}\text { Item}&\text { Cost }&\text { NRV }\\\hline\# 1 & \$ 12,000 & \$ 12,500 \\\# 2 & 21,250 & 19,750 \\\# 3 & 18,600 & 18,500\end{array}$ If Fundy values their inventory at the lower of cost and net realizable value on a total inventory basis, what would be the loss on inventory write down for the current year?

• A)$500
• B)$1,100
• C)$1,600
• D)The loss would not be recorded until the items were sold.

---

Definitions:

Mechanical Ventilation

A medical procedure using machines to assist or replace spontaneous breathing.

Wound VAC System

The Wound VAC (Vacuum-Assisted Closure) System is a medical device that promotes wound healing by applying negative pressure to draw the edges of a wound together.

Intravenous Infusion

The administration of liquid substances directly into a vein for therapeutic purposes.