The Vogelson Company Accumulates the Following Cost and Net Realizable

question 56

Essay

The Vogelson Company accumulates the following cost and net realizable value data at December 31. $\begin{array}{lrr}\text {Inventory Categories}&\text { Cost Data}&\text {NRV }\\\hline\text { Camera } & \$ 11,000 & \$ 9,900 \\\text { Camcorders } & 7,800 & 8,500 \\\text { DVDs } & 14,000 & 12,000\end{array}$ What is the lower-of-cost-or-NRV amount for the inventory?

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Definitions:

Purchase Order

A commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Consumption Method

An accounting practice that records the cost of goods sold at the time they are consumed or sold, as opposed to when they are purchased.

Office Supplies

Items needed for the daily operations of a business, such as pens, paper, and staplers.

Government-Wide Financial Statements

Comprehensive financial reports that present the financial position and results of operations of all governmental activities and entities.