Answer:
Ending inventory is <u>$24,917</u>.
Explanation:
Lower-of-cost-or-net realizable value method implies that whichever is lower between the cost per unit and the net realizable value per unit is used to value the ending inventory of an item.
The ending inventory can therefore be determined as follows:
<u>For Cameras:</u>
Units = 113
Cost per unit = $61
net realizable value per unit = $74
We choose cost per unit since it is lower and we have:
Cameras ending inventory = 113 * $61 = $6,893
<u>For Blu-ray players:</u>
Units = 153
Cost per unit = $77
net realizable value per unit = $50
We choose net realizable value per unit since it is lower and we have:
Blu-ray players ending inventory = 153 * $50 = $7,650
<u>For iPods:</u>
Units = 133
Cost per unit = $86
net realizable value per unit = $78
We choose net realizable value per unit since it is lower and we have:
iPods ending inventory = 133 * $78 = $10,374
<u>Calculation of ending inventory:</u>
Ending inventory = Cameras ending inventory + Blu-ray players ending inventory + iPods ending inventory = $6,893 + $7,650 + $10,374 = $24,917
