Question

At year end, CurlZ, Inc.'s inventory consists of 270 bottles of CleanZ at $2 per bottle and 170 boxes of DyeZ at $14 per box. Market values are $2.30 per bottle for CleanZ and $12 per box for DyeZ. CurlZ should report its inventory at:

Answer 1

$2,580

Explanation:

The computation of inventory is shown below:-

The inventory is to be value through lower cost and market value

Inventory items Cost of Market value of lower cost and

inventories inventories market value

Bottles of Clean Z $540 $621 $540

(270 × $2) (270 × $2.30)

Boxes of Dye Z $2,380 $2,040 $2,040

(170 × $14) (170 × $12)

Total $2,580