In applying the lower of cost and net realizable value rule,the inventory of supplies would be valued at:
A)$45,000.
B)$54,000.
C)$41,000.
D)$60,000.

Question

Quizplus · Accepted Answer

The lower of cost and net realizable value rule requires inventory to be valued at the lower amount between its cost and its net realizable value. Here, $45,000 is the lower value compared to the other options.

In Applying the Lower of Cost and Net Realizable Value