Answered

Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value (LCNRV) basis in valuing inventories: Product Cost NRV A $115,000 $125,000 B $95,000 $75,000 C $175,000 $180,000 After Jenks applies the LCNRV rule, the value of the inventory reported on the balance sheet would be:

Answer :

Answer:

$365,000

Explanation:

The computation of the inventory reported on the balance sheet is shown below:

Product                  Cost                NRV            Lower cost

A                            $115,000         $125,000    $115,000

B                            $95,000          $75,000     $75,000

C                            $175,000         $180,000   $175,000

Total                                                                  $365,000

Go Question: Other Questions