Mini Co.’s inventory in 2021 consists of two line items:

Product A – 1000 pieces. Purchased all 1000 pieces on June 30^th 2021 paid for using a 2-year non-interest bearing note with the face amount of $10,000. The market rate for similar notes is 5%.

Product B – 100 pieces. Purchased on Sept 30^th paid for all 100 pieces with $2,000 cash.

On Dec 31^st, the selling costs for both product A and product B are $2 per piece. Product A has an estimated selling price of $9.80 each while product B has an estimated selling price of $19 each.

Mini Co. accounts for its inventory using LV-NRV at the individual product level.

What is the amount of inventory reported on its Dec 31^st 2021 Balance sheet?

Provide the journal entries for the write-down of inventory (if necessary).

Answer rating: 100% (QA)

Product A present value of note1000010052 907029 Cost per piece9070291000 90... View the full answer