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Taya2010 [7]
3 years ago
7

Jones Retail. had the following balances and transactions during 2017:

Business
1 answer:
Elina [12.6K]3 years ago
7 0

Answer:

B $1,625

Explanation:

The computation of the ending inventory based on the lower-of-cost-or-market value is shown below:

The ending inventory units = Beginning inventory + purchase of inventory - selling units

= 15 units + 35 units - 25 units

= 25 units

So, the cost of ending inventory = ending inventory units × purchase price

= 25 units × $84

= $2,100

And, the market value equal to

= ending inventory units × replacement cost

= 25 units × $65

= $1,625

Based on the lower-of-cost-or-market value, the ending inventory would be $1,625

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