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Xelga [282]
3 years ago
6

A company has the following per unit original costs and replacement costs for its inventory. LCM is applied to individual items.

Business
1 answer:
VladimirAG [237]3 years ago
6 0

Answer:

The total value of this company's ending inventory is $ 1,075

Explanation:

Under the lower of cost or market method, Inventory is measured at the lower of either cost or market value

Calculation of total value of this company's ending inventory is as follows:

Part A   Lower is Replacement Cost. Therefore (50units×$4.50)     225

Part B   Lower is  Cost. Therefore (75 units×$6.00)                           450

Part C   Lower is Replacement Cost. Therefore (160units×$2.50)    400

Total Value of Inventory                                                                      1075

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