Answer:
1.$37,000
2.$32,000/
Explanation:
1. Calculation to the Cost of ending inventory before any adjustment
Inventory Quantity Unit Cost Total cost
Furniture 200* $85 = $17,000
Electronics 50* $400= $20,000
Cost of ending inventory before any adjustment =$37,000
Therefore the Cost of ending inventory before any adjustment will be $37,000
2. Calculation to determine the ending inventory using the lower of cost and net realizable value.
Inventory Quantity Unit NRV
Furniture 200* $100 =$20,000
Electronics 50* $300= $15,000
Total cost of ending inventory using lower of cost and net realizable value (NRV) $32,000
Therefore the ending inventory using the lower of cost and net realizable value will be $32,000
