Nelson Corporation Sells Three Different Products When Applying the Lower of Cost or Market Rule to Available

question 133

Multiple Choice

Nelson Corporation sells three different products. The following information is available on December 31: $$\begin{array} { | c | c | c | c | } \hline \text { Inventory Item } & \text { Units } & \text { Cost per unit } & \text { Market value per unit } \\\hline X & 300 & \$ 4.00 & \$ 3.50 \\\hline Y & 600 & \$ 2.00 & \$ 1.50 \\\hline Z & 1,500 & \$ 3.00 & \$ 4.00 \\\hline\end{array}$$ When applying the lower of cost or market rule to each item, what will Nelson's total ending inventory balance be?

• A)$6,900
• B)$6,450
• C)$7,950
• D)$6,600

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Definitions:

Defendant

An individual, company, or institution being sued or accused in a court of law.

Property

Assets or possessions that belong to an individual or entity, encompassing both physical objects and legal rights.

Preponderance

In legal terms, the standard of proof that must be met to win a civil case, where the evidence must weigh more in favor of one side than the other.

Evidence

Information or objects presented in court to persuade the judge or jury of an argument's validity.