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 | 39 | $ | 61 | $ | 57 | ||||
Bats | 32 | 79 | 85 | ||||||
Shoes | 53 | 98 | 102 | ||||||
Uniforms | 57 | 43 | 43 | ||||||
Compute the lower of cost or market for ending inventory applied
separately to each product.
Coffee Bean | Units | Unit Cost | Market per unit | Lower of Cost or Market value | Total value as per Lower of cost or Market value ( Units x Lower of cost or Market value) |
Helmets | 39 | 61 | 57 | 57 | 2,223 |
Bats | 32 | 79 | 85 | 79 | 2,528 |
Shoes | 53 | 98 | 102 | 98 | 5,194 |
Uniforms | 57 | 43 | 43 | 43 | 2,451 |
Total | 141 | 12,396 |
The lower of cost or market for ending inventory applied separately to each product is $12,396.
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