S6 7 (Learning Objective 3 Applying the Net Realizable Value to inventory) It is December 31, end of the year, and the controller of Grass Corporation is applying the Net Realizable Value (NRV) to inventories Before any year end adjustments, Grass reports the following data Grass determines that the NRV of ending inventory is $48,000 Show what Grass should report for ending inventory and for cost of goods sold Identify the financial statement where each item appears Cost of goods sold Historical cost of ending inventory, as determined by a physical count $470,000 54,000

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Question: S6-7. (Learning Objective 3: Applying the Net Realizable Value to inventory) It is December 31, end of the year, and the controller of Grass Corporation

S6-7. (Learning Objective 3: Applying the Net Realizable Value to inventory) It is December 31, end of the year, and the controller of Grass Corporation is applying the Net Realizable Value

(NRV) to inventories. Before any year-end adjustments, Grass reports the following data:

Cost of goods sold........... Historical cost of ending inventory, as determined by

Grass determines that the NRV of ending inventory is $48,000. Show what Grass should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears.

Cost of goods sold........... Historical cost of ending inventory, as determined by a physical count.. $470,000 54,000

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