I am not quite sure what this question is asking, nor do I understand how...
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I am not quite sure what this question is asking, nor do I understand how to apply the lower-of-cost-or-NRV.
The controller of Alt Company is applying the lower-of-cost-or-net realizable value basis of valuing its ending inventory. The following information is available:
Cost Net Realizable
Value
Lawnmowers:
Self-propelled $14,800 $17,000
Push type 19,000 18,000
Total 33,800 35,000
Snowblowers:
Manual 29,800 31,000
Self-start 19,000 21,000
Total 48,800 52,000
Total inventory $82,600 $87,000
Compute the value of the ending inventory by applying the lower-of-cost-or-NRV. Show your work.
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