Question

Hagger 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? (Apply LCM to each category)

Answer 1

$64,000

Step-by-step explanation:

Hagger Sounds

Cost is been compared to market for each inventory category as follows:

iPods $20,400 + cell phones $18,000 +

DVDs $25,600

= $64,000.

Therefore using the lower-of-cost-or-market, the value of the ending will be $64,000