Berry, Inc. has 6 computers which have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a net realizable value of $450. What value should Berry, Inc. have for the computers at the end of the year?

Value of computers= $2,700

Explanation:

The value that is used to record inventory is the current realisable value of an asset. We do not use the original retail price as a basis but the current disposable price.

In this case Berry has 6 computers that have been part of the inventory for over 2 years, the original price of $900 is not used to value the goods. The net realisable price of $450 is now used.

Value of computers = Net realizable value* number of computers

Value of computers= 450* 6

Value of computers= $2,700

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