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9 May, 12:32

If a company values inventory at the lower of cost or market, which of the following is the value of merchandise inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole. Item Inventory Quantity Unit Cost Price Unit Market Price Product C 420 $ 6 $ 5 Product D 370 12 14 a.$7,280 b.$6,540 c.$6,960 d.$7,700

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  1. 9 May, 13:55
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    merchandise inventory on the balance sheet 6,540 option B

    Explanation:

    we should eevaluate between cost or market price, the lowest.

    Product C

    cost: 6

    market: 5

    we will use $5 so 420 units x 5 dollars = $ 2,100

    Product D

    cost: 12

    market: 14

    we will use $12 so 370 units x 12 dollars = $ 4,440‬

    Total merchandise: product C 4,440 + product D 2,100 = 6,540
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Home » Business » If a company values inventory at the lower of cost or market, which of the following is the value of merchandise inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole.
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