Question

6. Codify Lighting has the following groups of inventory and net realizable value for its light...

6. Codify Lighting has the following groups of inventory and net realizable value for its light fixtures :

                                                Cost                                         NRV

Ceiling Lights                         $23,500                                 $18,100

Chandeliers                             17,500                                   15,100

Table Lamps                           19,300                                   21,800

Floor Lamps                            16,000                                   19,400

Desk Lamps                                8,700                                   6,200

Total Inventory                       $85,000                                 $80,600

Instructions

(a)        Determine the lower of cost and net realizable value of the ending inventory for Codify Lighting.

(b)        Prepare the journal entry required, if any, to record the adjustments from cost to net realizable value.

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