Question

At year end, CurlZ, Inc.'s inventory consists of 350 bottles of CleanZ at $1 per bottle and 250 boxes of DyeZ at $8 per box. Market values are $1.20 per bottle for CleanZ and $6 per box for DyeZ. CurlZ should report its inventory at:

Answer 1

CurlZ, Inc. should report its inventory at the lower of cost or market value. The inventory value for CleanZ is $350 and the inventory value for DyeZ is $1500, resulting in a total inventory value of $1850.

Step-by-step explanation:

CurlZ, Inc. should report its inventory at the lower of cost or market value. According to the information provided, the cost of CleanZ is $1 per bottle and the market value is $1.20 per bottle. Therefore, the inventory value for CleanZ would be calculated by multiplying the quantity (350 bottles) by the lower of cost or market value ($1 per bottle). Similarly, for DyeZ, the cost is $8 per box and the market value is $6 per box. The inventory value for DyeZ would be calculated by multiplying the quantity (250 boxes) by the lower of cost or market value ($6 per box).

So, the inventory value for CleanZ would be 350 bottles x $1 = $350 and the inventory value for DyeZ would be 250 boxes x $6 = $1500.

Therefore, CurlZ, Inc. should report its inventory at a total value of $350 for CleanZ and $1500 for DyeZ, resulting in a total inventory value of $1850.