The lower of cost or market rule
Segal Company, a retailer of Nokia mobile phones, uses FIFO for costing its inventory. A physical count of inventory at the end of the year revealed the following:
|
Model 3720 |
60 units at a per unit cost of €90 |
|
Model 6700 |
150 units at a per unit cost of €85 |
|
Model 6303 |
100 units at a per unit cost of €75 |
The net realizable value per unit at year-end was €72, €130, and €105 for the Models 3720, 6700, and 6303, respectively.
Required
Determine the amount of ending inventory that should appear on the balance sheet.