Question

Swifty Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCM) basis in valuing inventories. Net realizable Product Cost value A $129000 $126000 B 80000 72000 C 154000 155000 If Swifty applies the LCNRV basis, the value of the inventory reported on the balance sheet would bea. $338000. b. $355000. c. $362000. d. $345000.

Answer 1

Answer:

$352,000

Explanation:

The computation is shown below:

Product         Net realizable value          Cost               LCNRV

A                    $129,000                         $126,000         $126,000

B                   $80,000                           $72,000           $72,000

C                  $154,000                          $155,000         $154,000

Total value of the inventory                                          $352,000

This is the answer but the same is not provided in the given options