Novelli's Nursery has developed the following data to reduce the cost and net realizable valuation of its
Question:
Novelli's Nursery has developed the following data to reduce the cost and net realizable valuation of its products:
Sales Price Cost
Broadleaf Trees:
Ash $1,650 $1,560
Beech 2,710 1,460
Needleleaf Trees:
Cedar $3,180 $1,610
Fir 3,200 3,210
Fruit trees:
Apple $2,140 $1,260
Cherry 2,810 1,660
Selling costs are 10% of the sale price.
Required:
Determine the reported inventory value assuming the least cost and net realizable value rule applies to individual trees.
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,