Question

Nelson Corporation sells three different products.The following inventory information is available on December 31: Ch6_Q150 After applying the lower of cost or market (LCM) rule to inventory, what amount should Nelson report for total ending inventory on its Dec. 31 balance sheet

Answer 1

Answer:

$4,300

Explanation:

Calculation for what amount should Nelson report for total ending inventory on its Dec. 31 balance sheet

Total ending inventory=( 200*3.50)+(400*1.50)+ (1,000*3.00)

Total ending inventory=$700+$600+$3,000

Total ending inventory=$4,300

Therefore the amount that Nelson should report for total ending inventory on its Dec. 31 balance sheet will be $4,300