Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

on april 1, a company purchased two units of inventory, a and b. the cost of unit a was $650, and the cost of unit b was $625. on april 30, the company had not sold the inventory. the net realizable value of unit a was now $685, while the net realizable value of unit b was $550. the adjusting entry associated with the lower of cost or net realizable value on april 30 will be:

Sagot :

Because item B's net realisable value is less than its cost by $75 (or $625 minus $550),

The following adjustment will be made in connection with the April 30 lower of cost and net realisable value:

Cost of Products Sold

75 Inventory

What  is inventories cost?

All costs related to placing orders, maintaining inventories, and controlling stock levels in a product-based business are included in inventory costs. Ordering costs, carrying costs, and stockout costs are the three main categories into which total inventory costs are often divided.

Cost of keeping inventory equals capital costs plus service costs plus risk costs plus rent expenses. The costs of inventory times the quantity of stock on hand equals the overall value of your inventory. The sum of inventory expenses x the available item stock equals the total inventory value.

Learn more about inventory cost

https://brainly.com/question/25947903

#SPJ4

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.