Question

Ray's Sounds has accumulated the following cost and market data on March 31: Cost Data Market Data iPods $24,000 $20,400 Cell phones $18,000 $19,000 DVDs $28,000 $25,600 Using the lower-of-cost-or-market, how much is the value of the ending inventory? $65,000 $63,100 $64,000 $70,000 $71,000

Answer 1

$64,000

Step-by-step explanation:

product cost data market data lower of cost or market

ipod 24,000 20,400 20,400

cell phone 18,000 19,000 18,000

DVDs 28,000 25,600 25,600

ending inventory = 20,400 + 18,000 + 25,600

= $64,000

Therefore, The value of the ending inventory is $64,000