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Sagot :
The correct option is $85
Costco Medical Supply's inventory:
Surgical Eq - Surgical Supp - Rehab Eq - Rehab Supp
Selling price $260 $100 $340 $165
Cost $170 $90 $250 $162
Costs to sell $30 $15 $25 $10
If we apply the net realizable value rule, the value of surgical supplies would be:
NRV = $100 = $15 = $85
The NRV is also the lower of cost since $85 < $90.
What is meant by NRV?
Net realizable value (NRV) is is a common method used to evaluate an asset's value for inventory accounting. It is found by determining the expected selling price of an asset and all the costs associated with the eventual sale of the asset, and then calculating the difference between these two.
NRV = Expected selling price - Total production and selling costs.
I understand that the question you are looking for is :
In applying the lower of cost or net realizable value rule, the inventory of rehab equipment would be valued at:
Multiple Choice $75. $90. $85.
Learn more about NRV on:
brainly.com/question/22668290
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