Laurie Company Applied FIFO to Its Inventory and Got the Following

question 120

Essay

Laurie Company applied FIFO to its inventory and got the following results for its ending inventory.
DVRs 140 units at a cost per unit of $60
DVD players 210 units at a cost per unit of $75
iPods 175 units at a cost per unit of $80
The cost of purchasing units at year-end was DVRs $68 DVD players $70 and iPods $76.
Instructions
Determine the amount of ending inventory at lower-of-cost-or-market.

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Definitions:

Equipment

Tangible assets used in the operation of a business, such as machinery, tools, and vehicles, not intended for sale.

Partnership

A legitimate business partnership that involves several people who collaboratively oversee the operation and profit sharing.

Liquidation

The process of closing a business and distributing its assets to claimants, typically when the company is insolvent.

Noncash Assets

Noncash Assets are assets that are physical or intangible properties owned by a company that are not in the form of cash or easily convertible into cash.