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?

Question

Computers and Technology

Fitzpatrick

22 April, 05:16

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?

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Answers (1)

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Lilliana Sexton · Answer 1

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

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.