Question 16
Aubrey Graham Company applied LIFO to its inventory and got the following results for its ending inventory:
• Microphones 275 units at a cost per unit of $7
• Microphone Stands 330 units at a cost per unit of $2
• Headphones 125 units at a cost per unit of $40
• Computers 50 units at a cost per unit of $60
The net realizable value at year-end was microphones $65, Microphone Stands $45, headphones $70, and computers $60.
Instructions: Complete the following table to determine the amount of ending inventory at lower-of-cost-or-net realizable value. Amounts should be computed for individual inventory items and total inventory. Applicable dollar signs have been provided for you. Answers should include applicable commas. Decimals should not be included; for example, your answers should be formatted as follows: 15,000.
Inventory Item Lower of Cost or NRV
Microphones $
Microphone Stands $
Headphones $
Computers $
Total Inventory $