Question

Ray's Sounds has accumulated the following cost and market data on March 31: Cost Data Market Data iPods $24,000 $20,400 Cell phones $18,000 $19,000 DVDs $28,000 $25,600 Using the lower-of-cost-or-market, how much is the value of the ending inventory? $65,000 $63,100 $64,000 $70,000 $71,000

Answer 1

Answer:

$64,000

Explanation:

product     cost data     market data       lower of cost or market

ipod       24,000         20,400             20,400

cell phone 18,000          19,000                18,000

DVDs        28,000          25,600              25,600

ending inventory = 20,400 + 18,000  + 25,600

                             = $64,000

Therefore, The value of the ending inventory is $64,000