Inventory may be recorded at net realizable value if
A) there is a controlled market with a quoted price.
B) there are no significant costs of disposal.
C) the inventory consists of precious metals or agricultural products.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these answers are correct. Inventory can be recorded at net realizable value when there is a controlled market with a quoted price, when there are no significant costs of disposal, and when the inventory consists of precious metals or agricultural products. Net realizable value is the estimated selling price of inventory less any estimated costs of completion, disposal, and transportation.

Inventory May Be Recorded at Net Realizable Value If