A company reports inventory using the lower of cost and net realizable value. Below is information related to its year-end inventory:InventoryQuantityCostNRVUnit A10$30$32Unit B184340Unit C122327Unit D151817Calculate ending inventory under the lower of cost and net realizable value and record any necessary adjustment to inventory.
What will be an ideal response?
Ending inventory = $1,551
| Cost of Goods Sold | 69 | ? |
| Inventory | ? | 69 |
Write-down = $1,620 (total cost) - $1,551 (LCM) = $69.
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