Question

Inventory Quantity Cost per Unit Net Realizable Value per Unit Classification:Premium Item 1 80 $180 $185 Item 2 150 100 98 Item 3 200 165 175 Item 4 140 158 120 Classification: Classic Item 5 100 100 98 Item 6 50 90 95 Item 7 500 105 115 Item 8 280 80 75 Required a. Calculate lower-of-cost-or-net realizable value of Guccii's December 31, 2020, inventory applying the rule to each individual item.

Answer 1

	Qty	Cost	NRV	Lower of Cost and NRV	Value
Item 1	80.00	180.00	185.00	180.00	14,400.00
Item 2	150.00	100.00	98.00	98.00	14,700.00
Item 3	200.00	165.00	175.00	165.00	33,000.00
Item 4	140.00	158.00	120.00	120.00	16,800.00
Item 5	100.00	100.00	98.00	98.00	9,800.00
Item 6	50.00	90.00	95.00	90.00	4,500.00
Item 7	500.00	105.00	115.00	105.00	52,500.00
Item 8	280.00	80.00	75.00	75.00	21,000.00
Total inventory Value					166,700.00