Smart Information Technology Company has the following cost and net realizable value data at December 31, 2017:
Question:
Smart Information Technology Company has the following cost and net realizable value data at December 31, 2017:
Inventory Categories __________ Cost ___________ Net Realizable Value
Personal computers..…………. $27,000 ……………………. $21,500
Servers..……………………… 18,000 ………………………. 19,500
Total solution printers ……….. 10,000 ……………………….. 8,500
(a) Calculate the lower of cost and net realizable value valuation assuming Smart Information Technology Company applies LCNRV to individual products.
(b) What adjustment should the company record if it uses a perpetual inventory system?
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a Inventory Categories Cost NRV LCNRV Adj Personal computers ...View the full answer
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