On April 1, Robert LLC 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, Robert LLC had not sold the inventory. The net realizable value (NRV) of unit A was now $685 while the net realizable value of unit B was $550. The adjustment associated with the lower-of-cost-or-NRV method on April 30 will be: Multiple Choice

$1,200

Explanation:

                purchase cost             net realizable value          LCM

unit A          $650                                $685                           $650

unit B          $625                                $550                          $550        

total          $1,275                                                                  $1,200

When you apply the lower of cost or market value, you must value your inventory at whichever is lower between historic cost (purchase cost) and the net realizable value (NRV). Any adjustments made will increase cost of goods sold and decrease inventory. In this case, the adjusting journal entry should be:

Dr Cost of goods sold 75

    Cr Inventory 75

the u.s. census bureau produces data on the population and economy nationwide. it can you to analyze the kind of people living in your neighborhood. it does not show you the market of people willing to buy your product or an existing market for your product. that will require more market research. the census bureau only gives you an insight to the demographics in your area.

answer; commerce clearing house;