a companys total cost of inventory was $329,000 and its net realizable value is $307,000. applying lower…

a companys total cost of inventory was $329,000 and its net realizable value is $307,000. applying lower cost or market, the amount reported should be $329,000. true or false true false

a companys total cost of inventory was $329,000 and its net realizable value is $307,000. applying lower cost or market, the amount reported should be $329,000. true or false true false

Answer

Answer:

False

Explanation:

Step1: Understand lower - cost - or - market rule

Under the lower - cost - or - market rule, inventory is reported at the lower of its cost or net realizable value.

Step2: Compare cost and net realizable value

The cost of inventory is $329,000 and the net realizable value is $307,000. Since $307,000 < $329,000.

Step3: Determine the reported amount

The amount reported should be the lower value, which is $307,000, not $329,000.