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Determine the inventory balance Company should report on the balance sheet at December 31, Year 1.

Determine the inventory balance Company should report on the balance sheet at December 31, Year 1.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 4E: Inventory Write-Down The following information for Tuell Company is available: Required: 1. Assume...
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9 Company reported to following information on its two inventory items on December 31, Year 1.

Item Cost Net Realizable value Replacement cost Net Realizable value - normal profit
A $58,000 $60,000 $55,000 $51,000
B 61,000 62,000 65,000 58,000

Company uses the first-in, first-out (FIFO) inventory cost flow assumption and applies inventory valuation rules to inventory as a whole.

Determine the inventory balance Company should report on the balance sheet at December 31, Year 1.

Note: Give your answer using dollar signs and commas but no decimal points (cents). Example: $12,345

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