Question

Using the lower of cost or market, what should the total inventory value be for the following items:_____. Item Quantity Unit Cost Price Unit Market Price Total Cost Price Total Market Price Lower of Cost or Market A 220 $9 $11 $1,980 $2,420 $fill in the blank 1 B 94 $17 $13 $1,598 $1,222 $fill in the blank 2 C 42 $25 $28 $1,050 $1,176Apply the lower-of-cost-or-market method to inventory as a whole.

Answer 1

Answer:

 $ 4252  is the lower cost price.  

Explanation:

Using lower of cost price or lower of market price :

Item      Total cost price    Total market value     Lower of cost or market price

  A            $ 1980                      $ 2420                          $ 1980

  B            $ 1598                      $ 1222                           $ 1222

  C            $ 1050                      $ 1176                            $ 1050              

                                                                                        $ 4252