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anygoal [31]
3 years ago
10

Wilson Animal Feeds has developed the following data to calculate lower of cost or market for its products.

Business
1 answer:
NeX [460]3 years ago
6 0

Answer:

The total reported inventory value is $1,130.

Explanation:

Note: The data given the question are sorted and presented properly as follows:

                                    <u> Selling Price  </u>         <u>    Cost    </u>

Large animals:                  

Cattle                                     $320                    $160

Horse                                      400                      400

Small animals:

Cat                                         $360                  $320

Dog                                          120                       90

Exotic pets:

Ferret                                     $140                    $112

Iguana                                       70                      48

Based on the lower of cost and net realizable value rule, we select the lower and determine the reported inventory value as follows:

<u>Details                                        Value ($)   </u>

Large animals:

Cattle                                            160

Horse                                            400

Small animals:

Cat                                                320

Dog                                                90

Exotic pets:

Ferret                                             112

Iguana                                        <u>    48    </u>

Total value                              <u>    1,130   </u>

Therefore, the total reported inventory value is $1,130.

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