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motikmotik
3 years ago
14

Consider the following information pertaining to OldWest's inventory:

Business
1 answer:
kipiarov [429]3 years ago
4 0

Answer:

$2,664

Explanation:

Generally Acceptable Accounting Principles requires that the closing inventory should be valued at lower of cost and Net realizable value.

Product     Quantity    Total Cost     Total Net Realizable Value

Revolvers      13           $126              $155

Spurs             22          $32               $27

Hats               9            $58               $48

Choosing Which one is lower for each product

Product     Quantity    Rate        Total Value

Revolvers      13           $126              $1,638

Spurs             22          $27               $ 594

Hats               9            $48               $432

Total Closing Inventory Value = $1,638 + $594 + $432 = $2664

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"The function C(t)=C(1+r)t models the rise in the cost of a product that has a cost of C today, subject to an average yearly inf
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