Answer:
Dole's inventory at December 31, 2015 = $980,000
Explanation:
Data provided in the question:
Cost Retail
Inventory, 1/1/2015 $147,000 $203,000
Purchases 833,000 1,155,000
Additional markups 42,000
Available for sale $980,000 $1,400,000
Total Sales for the year = $1,050,000
Markdowns = $10,000
Now,
Under the lower-of-cost-or-market method,
the cost of the inventory is recorded at a price lower of the original cost or the retail value.
Therefore,
For the given data original cost is less than the retail price i.e ( $980,000 < $1,400,000 )
Hence,
Dole's inventory at December 31, 2015 = $980,000