What should be the inventory value of part

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Reference no: EM133327569

Case: Remus Machinery sells parts for farm equipment. Remus is concerned about whether a specific part (Part X41) is impaired. Part X41 has an estimated selling price of $500. The cost to finish and sell Part X41 is $150. The cost of Part X41 on Remus's inventory account is $400. If Remus were to buy Part X41 from its supplier, the current replacement cost is $250. The normal profit on Part X41 is $50.

Question: What should be the inventory value of Part X41 if Remus uses the LCNRV (Lower of Cost or Net Realizable Value) method?

Reference no: EM133327569

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