Wood Company had the following inventory items on hand at the end of the year. Computing the lower of cost or net realizable value on an item-by-item basis, determine what amount would be reported on the balance sheet for inventory.

$9,280

Explanation:

The computation of the inventory amount reported in the balance sheet is shown below:

                       (A)                                                  (B)                 (A × B)

Particulars      Quantity   Cost per item  NRV  Lower of         Reported

                                                                           Cost or Market  Amount

Item A               80            $87                   $102   $87                $6,980

Item B               40             $82                  $57    $57                 $2,280

Total                                                                                               $9,280

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

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