It is December 31, 2017, end of year, and the controller of Garcia Corporation is applying the lower-of-cost-and-net-realizable-value (LCNRV) rule to inventories. Before any yearend adjustments Garcia has these data:
Cost of goods sold.................................................................................................. $410,000
Historical cost of ending inventory,
as determined by a physical count............................................................................ 60,000
Garcia determines that the net realizable value of ending inventory is $49,000. Show what Garcia should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears.