Brief Exercise 6-16 (Algo) Calculate ending inventory using the lower of cost and net realizable value (LO6-6) Creative Technology reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year- end inventory. Inventory Quantity 100 40 Unit NRV Unit Cost $77 $47 47 57 Optima cameras Inspire speakers Calculate the total amount to be reported for ending inventory in the balance sheet.

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…