You have been provided with the following information regarding Love Paper Ltd.'s inventory for June, July, and August.

Instructions
(a) Calculate the cost and net realizable value of Love Paper's paper inventory at
(1) June 30,
(2) July 31, and
(3) August 31.
(b) Prepare any journal entry necessary to record the LCNRV of the paper inventory at
(1) June 30,
(2) July 31, and
(3) August 31. Assume that Love Paper uses a perpetual inventory system.
(c) Are there any differences in recording LCNRV for companies reporting using ASPE rather than IFRS?

Transcribed Image Text:

Paper Inventory (in tonnes Cost/Tonne NRVTonne June 30 July 31 August 31 6,000 6,700 5,500 $790 850 815 $850 815 790