Question

Exercise 5-10 Lower of cost or market LO P2 Martinez Company's ending inventory includes the following items. Product Units Cost per Unit Market per Unit Helmets 27 $ 55 $ 59 Bats 20 83 77 Shoes 41 100 96 Uniforms 45 41 41 Compute the lower of cost or market for ending inventory applied separately to each product.

Answer 1

Martinez Company

Ending inventory is:

= $8,806.

Step-by-step explanation:

a) Data and Calculations:

Product Units Cost per Unit Market per Unit

Helmets 27 $ 55 $ 59

Bats 20 83 77

Shoes 41 100 96

Uniforms 45 41 41

Lower of cost or market value Valuation:

Product Units Cost per Unit Market per Unit LCM

Helmets 27 $ 55 $ 59 $1,485

Bats 20 83 77 1,540

Shoes 41 100 96 3,936

Uniforms 45 41 41 1,845

Total cost of ending inventory $8,806