Question: Scotts Sporting Stores Inc. reported the following cost and net realizable value information for inventory at December 31: Required: a. Calculate the ending inventory balance

Scott€™s Sporting Stores Inc. reported the following cost and net realizable value information for inventory at December 31:

Required:
a. Calculate the ending inventory balance for skates and running shoes using the lower of cost and net realizable value for each item.
b. Calculate the ending inventory balance for skates and running shoes using the historical unit costs provided.
c. Compare the difference in the ending inventory amounts under the two approaches. Which method provides a more faithful representation of the inventory value?

Product Item Units Unit Cost Unit NRV Skates: Bauer 13 $259 $400 $350 CCM 10 S412 Running shoes: Adidas $120 $120 Nike S117 $110

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