Answer:
$341,000
Explanation:
The lower of cost or market (LCM) is an inventory valuation method that values and records inventories on the balance sheet date at either the historical cost or the market value.
Note that this question is merged together, but it first separated first before answering the question as follows:
For product A, Cost price is $110,000, while Marker price is $120,000. Since the Cost price of $110,000 is lower, it therefore used to value and report Product A.
For product B, Cost price is $80,000, while Market price is $76,000. Since the Market price of $76,000 is lower, it therefore used to value and report Product B.
For product C, Cost price is $155,000, while Market price is $162,000. Since the Cost price is $155,000 is lower, it therefore used to value and report Product C.
Therefore, we have:
The value of the inventory = $110,000 + $76,000 + $155,000 = $341,000
Therefore, the value of the inventory reported on the balance sheet would be $341,000.
