Sugary Company has the policy of valuing inventory at the lower of cost and net realizable value using the allowance method. Allowance to Reduce Inventory to NRV account at December 31, 2021 before adjustment is P86,000. Data pertaining to its two classes of sugar products at December 31, 2021 follow: Regular refined (500 bags): NRV/bag-1,500 Cost/bag-1,650 Muscovado (250 bags): NRV/bag-1,900 Cost/bag-1,750 How much inventory should be shown in Sugary Company’s December 31 statement of financial position?

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 2MC: Moore Company uses the LIFO cost flow assumption and carries Product A in inventory on December 31,...
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Sugary Company has the policy of valuing inventory at the lower of cost and net realizable value using the allowance method. Allowance to Reduce Inventory to NRV account at December 31, 2021 before adjustment is P86,000. Data pertaining to its two classes of sugar products at December 31, 2021 follow:

Regular refined (500 bags):
    NRV/bag-1,500
    Cost/bag-1,650

Muscovado (250 bags):
    NRV/bag-1,900
    Cost/bag-1,750

How much inventory should be shown in Sugary Company’s December 31 statement of financial position?

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