Whitman Corporation Sells Six Different Products When Applying the Lower of Cost or Market Rule to Available

question 87

Multiple Choice

Whitman Corporation sells six different products. The following information is available on December 31: $$\begin{array} { | l | c | c | c | c | } \hline \text { Inventory Item } & \text { Units } & \text { Cost per unit } & \text { Market value per unit } & \text { Estimated Selling Price } \\\hline \text { Tin } & 60 & \$ 500 & \$ 505 & \$ 515 \\\hline \text { Titanium } & 20 & 5,000 & 4,950 & 5,100 \\\hline \text { Stainless Steel } & 80 & 2,000 & 1,910 & 1,985 \\\hline \text { Aluminum } & 80 & 350 & 285 & 290 \\\hline \text { Iron } & 40 & 400 & 410 & 425 \\\hline \text { Fiberglass } & 40 & 300 & 295 & 310 \\\hline\end{array}$$ When applying the lower of cost or market rule to each item, what will Whitman's total ending inventory balance be?

• A)$346,000
• B)$332,400
• C)$333,100
• D)$332,800

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Definitions:

Extortion

The act of acquiring something, particularly money, by using coercion or intimidation.

Influencing

involves altering or affecting someone's beliefs, actions, or perceptions through persuasion, social interactions, or other means.

Criminal Law Suit

A legal proceeding involving a person who is charged with a crime, facing penalties such as fines or imprisonment.

Private Party

An individual or group not representing a company or organization, especially in transactions or legal contexts.