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Pina Colada Corp. developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing inventories: Product Cost Market A $125000 $132000 B 88000 84000 C 176000 178000 After Pina Colada Corp. applies the LCNRV rule, the value of the inventory reported on the balance sheet would be

Respuesta :

Answer:

$385,000

Explanation:

The computation of  value of the inventory reported using the LCNRV rule is shown below:

Product            Cost                Market            Lower value of cost and market

A                     $125,000         $132,000        $125,000

B                     $88,000           $84,000         $84,000

C                     $176,000          $178,000        $176,000

Ending inventory value                                   $385,000

Based on this, the value of the ending inventory is $385,000 by applying the LCNRV rule