Question Details

Compute the valuation for the December 31, 2011, inventory 



1
The controller of Scheller 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	$15,000	$17,000
	Push type	  19,000	  16,000
		Total	  34,000	  33,000

Snowblowers:
	Manual	30,000	31,000
	Self-start	  18,000	  21,000
		Total	  48,000	  52,000
	Total inventory	$82,000	$85,000

Instructions
Compute the value of the ending inventory by applying the lower-of-cost-or- Net realizable value basis.



2
Finch Company is preparing the annual financial statements dated December 31, 2011. Information about inventory stocked for regular sale follows:

		Quantity	Unit Cost	Net Realizable 
	Item	on Hand	When Acquired	Value at year end
	A	50	€20	€19
	B	100	45	45
	C	20	60	62
	D	40	40	37

Instructions
Compute the valuation for the December 31, 2011, inventory using the lower-of-cost-or-net realizable value basis.





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