Exercise 6-13 Bonita Company applied FIFO to its inventory and got the following
ID: 2328159 • Letter: E
Question
Exercise 6-13 Bonita Company applied FIFO to its inventory and got the following results for its ending inventory. Cameras Blu-ray players 165 units at a cost per unit of $70 iPods 100 units at a cost per unit of $63 130 units at a cost per unit of $83 The net realizable value at year-end was cameras $71, Blu-ray players $68, and iPods $77. Determine the amount of ending inventory at lower-of-cost-or-net realizable value. Ending inventory Click if you would like to Show Work for this question: Open Show WorkExplanation / Answer
For cameras Cost is lower than the realizable value and for Blu ray players and ipods realizable value is lower than the cost, so same is considered while calculating the value of closing inventory.
Caculation of Ending inventory Qty Price Amount Cameras 100 63 6,300.00 Blu ray players 165 68 11,220.00 Ipods 130 77 10,010.00 Total 27,530.00