Daigle Corporation’s ending inventory, calculated according to their chosen cost flow assumption, which is LIFO, is $3.2 m. After analysing the market for Daigle’s products, Daigle estimates that the Net Realisable Value of their inventory is $3.0 m.

Required: 

What, if anything, does Daigle need to record in the accounting records to reflect these facts? Briefly explain why.

Suppose the Net Realisable Value is estimated to be $3.5 m instead of $3.0 m as was the case above. 

Briefly explain what, if anything, Daigle would need to record in that instance.

Answer rating: 100% (QA)

Answer Daigle Corporation In the case of Daigle Corporation where the ending inventory calculated ac... View the full answer