Question

Lipton Hardware prepared the following schedule of unit costs and market prices for three items of merchandise inventory. Item Units Cost per unit Market price per unit A 1,000 $.50 $.55 B 2,000 .45 .30 C 1,500 .60 .75 Applying the lower-of-cost-or-market price rule, the total value of the entire inventory of the units would be reported as which of the following?

Answer 1

The the total value would be reported as Market price per unit = 2,275

Step-by-step explanation:

From my calculation Cost price per unit = 2,300

Market price per unit = 2,275

Per the lower-of-cost-or-market price rule, the one with the lower total value between cost price of good and market price of good selected.