You have been provided with the following information regarding Love Paper Ltd.'s inventory for June, July, and August.
_____________Paper Inventory (in tonnes)______Cost/Tonne__________NRV/Tonne
June 31.............................16,000......................................$790..................................$850
July 31..............................16,700........................................850....................................815
August 31.........................15,500........................................815....................................790
Instructions
(a) Calculate the cost and net realizable value of Love Paper's paper inventory at (1) June 30, (2) July 31, and (3) August 31.
(b) Prepare any journal entry necessary to record the LCNRV of the paper inventory at (1) June 30, (2) July 31, and (3) August 31. Assume that Love Paper uses a perpetual inventory system.