Question

Raleigh Co. has the following products in its ending inventory. Compute the lower of cost or market total for inventory applied separately to each product. Product Quantity Cost per unit Market per unit Jelly 150 $2.00 2.15 Jam 370 $2.65 2.50 Marmalade 260 $3.10 3.05 a. $2,040.50. b. $2,086.50. c. $2,018.00. d. $2,109.00. e. $2,053.50.

Answer 1

Answer:

c. $2,018.00

Explanation:

Lower of cost or market is the inventory valuation method which requires to record the inventory at a value lower of

• Initial cost of inventory ( Manufacturing cost or Purchasing cost )
• Market value of the Inventory ( Net realizable value of the market )

Product__Quantity__Cost per unit__Market per unit___ Lower ____Value

Jelly _____150 ______$2.00 ______2.15___________ $2.00____ $300

Jam _____ 370 _____ $2.65 ______2.50 __________ $2.50 ____ $925

Marmalade 260 _____ $3.10 ______3.05  __________ $3.05 ____ $793

Total Value ___________________________________________$2,018