Facts
Moonstruck Enterprises Inc. is a retailer of Italian furniture and has five major product lines: sofas, dining tables, beds, closets, and lounge chairs. At December 31, 200X, quantity on hand, cost per unit, and net realizable value (NRV) per unit of the product lines are as follows:
|
Quantity |
Cost |
NRV |
|
|
Product line |
on hand |
per unit ($) |
per unit ($) |
|
Sofas |
100 |
1,000 |
1,020 |
|
Dining tables |
200 |
500 |
450 |
|
Beds |
300 |
1,500 |
1,600 |
|
Closets |
400 |
750 |
770 |
|
Lounge chairs |
500 |
250 |
200 |
Required
Compute the valuation of the inventory of Moonstruck Enterprises at December 31, 200X, under IAS 2 using the “lower of cost and NRV” principle.