The Net Realizable Value of Majik's Ending Inventory Items at June

question 65

Essay

The net realizable value of Majik's ending inventory items at June 30, 2017 are asfollows: Make the adjusting entry, if needed, to state Majik's inventory at its lower of cost and net realizable value (LCNRV)on an item-by-item basis at June 30, 2017.

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Definitions:

Product Costs

The costs directly associated with the production of goods, including raw materials, labor, and manufacturing overhead.

Indirect Costs

Expenses not directly tied to a specific product, service, project, or activity, typically including utilities, rent, and administrative salaries.

Cost Object

Any item for which costs are measured and assigned, including products, services, projects, activities, or customers.

Cost Object

Any item for which costs are separately measured and tracked, such as products, services, projects, or customers.