At December 31, 2015, the following information was available from Dole Co.'s accounting records: Cost Retail Inventory, 1/1/2015 $147,000 $ 203,000 Purchases 833,000 1,155,000 Additional markups 42,000 Available for sale $980,000 $1,400,000 Sales for the year totaled $1,050,000. Markdowns amounted to $10,000. Under the lower-of-cost-or-market method, Dole's inventory at December 31, 2015 was

Dole's inventory at December 31, 2015 = $980,000

Explanation:

Data provided in the question:

Cost Retail

Inventory, 1/1/2015 $147,000 $203,000

Purchases 833,000 1,155,000

Additional markups 42,000

Available for sale $980,000 $1,400,000

Total Sales for the year = $1,050,000

Markdowns = $10,000

Now,

Under the lower-of-cost-or-market method,

the cost of the inventory is recorded at a price lower of the original cost or the retail value.

Therefore,

For the given data original cost is less than the retail price i. e ($980,000 < $1,400,000)

Hence,

Dole's inventory at December 31, 2015 = $980,000