The Controller of Greene Yard Company Is Applying the Lower-Of-Cost-Or-Market

question 37

Essay

The controller of Greene Yard Company is applying the lower-of-cost-or-market basis of valuing its ending inventory. The following information is available: $\begin{array}{lcc}& \underline{\text { Cost} } & \underline{ \text { Market Value }}\\\text { Lawnmowers: }\\\text { Self propelled } & \$ 16,800 & \$ 17,000 \\ \text { Push type } & \underline{19,500 }&\underline{ 18,000} \\ \text { Total } & \underline{36.300 }&\underline{ 35,000} \\\end{array}$

$\text { Snowblowers: }$
$\begin{array}{lrr}\text { Manual } & 29,800 & 30,000 \\\text { Self-start } & \underline{19,700}& \underline{21,000} \\\quad \text { Total } & \underline{49,000} & \underline{ 51,000} \\\text { Total inventory } & \underline{\$ 85,800} & \underline{\$86,000}\end{array}$ Instructions
Compute the value of the ending inventory by applying the lower-of-cost-or-market basis.

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Definitions:

Banking Regulations

Are laws and guidelines established by governments and financial regulatory bodies to ensure stability, fairness, and efficiency in the banking sector.

Corporate Governance

The framework of rules, practices, and processes by which a company is directed and controlled, ensuring accountability, fairness, and transparency in a company's relationship with its stakeholders.

Financial Markets

Platforms where individuals, companies, and governments can trade financial securities, commodities, and other fungible assets.

Financialization

The increasing dominance of financial markets, financial motives, financial institutions, and financial elites in the economy, overshadowing traditional industrial capital.