A Company Reported the Following Data Related to Its Ending

question 34

Essay

A company reported the following data related to its ending inventory:
Product Units Available Cost NRV
849 100 $10 $11
842 75 16 14
847 60 14 13
860 40 16 20
Calculate the lower of cost and net realizable value on the inventory applied separately to each product.

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Definitions:

Operating Income

The profit realized from a business's operations after subtracting operating expenses like wages, depreciation, and cost of goods sold.

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and treats fixed overhead as a period expense.

Activity Base

A measure used to assign costs in activity-based costing, reflecting the volume of activity that drives costs.

Service Firm

A business that provides intangible products or services to consumers or other businesses.