Novelli's Nursery has developed the following data in order to calculate the lower of cost...
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Accounting
Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees.
Selling Price
Cost
Broad leaf trees:
Ash
$
1,880
$
1,780
Beech
2,320
1,680
Needle leaf trees:
Cedar
$
2,660
$
1,830
Fir
3,400
3,430
Fruit trees:
Apple
$
1,880
$
1,480
Cherry
2,420
1,880
The costs to sell are 10% of selling price. Required: Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to individual trees.
Product
Cost
NRV
Lower of Cost or NRV
Ash
Beech
Cedar
Fir
Apple
Cherry
Inventory value
Answer & Explanation
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