If a Company Values Inventory at the Lower of Cost

question 145

Multiple Choice

If a company values inventory at the lower of cost or market, which of the following is the value of merchandise inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole. $$\begin{array} { | l | l | l | l | } \hline \text { Item } & \text { Inventory Quantity } & \text { Unit Cost Price } & \text { Unit Market Price } \\\hline \text { Product C } & 420 & \$ 6 & \$ 5 \\\hline \text { Product D } & 370 & 12 & 14 \\\hline\end{array}$$

• A) $6,960
• B) $7,700
• C) $6,540
• D) $7,280

---

Definitions:

Colorblindness

A genetic or acquired inability to see color or differentiate colors, affecting the perception of hues.

Proprioceptive Feedback

A type of sensory information that provides input on the position and movement of one's body parts, critical for coordinating movements and maintaining posture.

Kinesthetic Sense

The ability to sense body position and movement, also known as proprioception, which helps in coordinating motor functions.

Vestibular Senses

The sensory system that provides the leading contribution to the sense of balance and spatial orientation for coordinating movement with balance.