To determine the lower-of-cost-or-net realizable value of the inventory for Carla Vista Company at December 31, we need to examine each inventory category and compare its cost data with its net realizable value (NRV) data. Here is the detailed, step-by-step solution:
1. Camera:
- Cost: \[tex]$12,980
- Net Realizable Value (NRV): \$[/tex]11,682
- The lower value between the cost and the NRV for the camera is \[tex]$11,682.
2. Cell phones:
- Cost: \$[/tex]9,204
- Net Realizable Value (NRV): \[tex]$10,030
- The lower value between the cost and the NRV for cell phones is \$[/tex]9,204.
3. DVDs:
- Cost: \[tex]$16,520
- Net Realizable Value (NRV): \$[/tex]14,160
- The lower value between the cost and the NRV for DVDs is \[tex]$14,160.
Next, we sum up all the lower values we have determined:
\[ \text{Total Lower-of-Cost-or-Net Realizable Value} = 11,682 + 9,204 + 14,160 \]
\[
\text{Total Lower-of-Cost-or-Net Realizable Value} = 35,046
\]
Thus, the lower-of-cost-or-net realizable value of the inventory for Carla Vista Company at December 31 is:
\[ \$[/tex]35,046 \]
