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(Solved): Gamma Company uses the FIFO method to cost its inventory and thus report inventories at the lower-o ...




Gamma Company uses the FIFO method to cost its inventory and thus report inventories at the lower-of-cost-or-net realizable v
Gamma Company uses the FIFO method to cost its inventory and thus report inventories at the lower-of-cost-or-net realizable value (LCNRV). At December 31, 2025, Gamma's finished goods inventory had a cost of \( \$ 32,000 \). The expected selling price was \( \$ 40,000 \). The company incurs selling costs of \( 25 \% \) of the expected selling price. Gamma will report the inventory on its December 31,2025 balance sheet at: \( \$ 50,000 \) \( \$ 32,000 \) \( \$ 30,000 \) \( \$ 40,000 \)


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Net realizable value = Sell
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