Solution-What amount should loft include in inventory at

What amount should loft include in inventory at year-end

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Question - Loft Co. reviewed its inventory values for proper pricing at year-end. The following summarizes two inventory items examined for the lower of cost or market:

	Inventory item #1	Inventory item #2
Original cost	$210,000	$400,000
Replacement cost	$150,000	$370,000
Net realizable value	$240,000	$410,000
Net realizable value less profit margin	$208,000	$405,000

What amount should Loft include in inventory at year-end, if it uses the total of the inventory to apply the lower of cost or market?

$613,000

$520,000

$650,000

$610,000

Reference no: EM132019909

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What amount should loft include in inventory at year-end

Reference no: EM132019909

Reference no: EM132019909

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