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Question - The inventory of Monty Company on December 31, 2017, consists of the following items.
Part No.
Quantity
Cost per Unit
NRV
110
680
$80
$110
111
970
70
42
112
540
80
56
113
380
160
190
120
490
195
218
121*
1,540
16
0.2
122
290
250
245
*Part no. 121 is obsolete and has a realizable value of $0.2 each as scrap.
(a) Determine the inventory as at December 31, 2017, by the lower of cost and net realizable value method, applying this method directly to each item.
(b) Determine the inventory as at December 31, 2017, by the lower of cost and net realizable value method, applying the method to the total of the inventory.
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