Lesson Plan

• Describe the components of inventory cost and net realizable value.
• Apply the lower of cost and NRV rule to determine inventory valuation.
• Calculate NRV and required write‑downs for different inventory categories.
• Record the appropriate journal entry for an inventory write‑down.
• Evaluate the impact of inventory write‑downs on the financial statements.

• Projector and screen
• Whiteboard and markers
• Printed worksheet with inventory data table
• Calculator for each student
• Accounting textbook or reference sheet on NRV
• Sample journal entry template

Begin with a quick question: “If a product’s selling price falls below its purchase cost, how should we reflect this in our accounts?” Review prior learning on inventory costing, then state that today’s success criteria are to correctly calculate NRV, apply the lower‑of‑cost‑or‑NRV rule, and produce the correct journal entry.

1. Do‑now (5'): Students solve a short problem on inventory cost vs selling price (check understanding).
2. Mini‑lecture (10'): Explain cost, NRV, and the lower‑of‑cost‑or‑NRV principle with examples (teacher‑led).
3. Guided practice (12'): Work through the worksheet – calculate NRV for each item and decide on write‑downs (whole class).
4. Journal entry activity (8'): Students record the write‑down for raw material C using the template (pairs).
5. Concept check (5'): Quick quiz (Kahoot) on key points (individual).
6. Summary discussion (5'): Review answers and clarify misconceptions (whole class).

Summarise that inventory must be shown at the lower of cost or NRV and that write‑downs affect profit. For the exit ticket, each student writes one key takeaway on a sticky note. Assign homework: complete a new set of inventory items and prepare the corresponding journal entries.