Use the Lower-Of-Cost-Or-Market Rule to Determine the Value of the Following

question 32

Short Answer

Use the lower-of-cost-or-market rule to determine the value of the following inventory for Bargains Galore, Inc.: $$\begin{array} { l l l l l l } \text { Item } & \text { Quantity } & \text { Cost } & \text { Market } & \text { Basis } & \text { Amount } \\\hline \text { raincoats } & 220 & \$ 36 & \$ 33 & & \\ \text { umbrellas } & 180 & 13 & 14 & & \\\text { windbreakers } & 428 & 35 & 33 & & \\\text { computer bag } & 278 & 56 & 50 & & \\\text { briefcase cover } & 318 & 22 & 17 & & \\\hline\end{array}$$

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Definitions:

Merit Pay Increases

Salary increments awarded to employees based on their performance, productivity, or achievements.

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, particularly his experiments with dogs, demonstrating that behavior can be conditioned.

Classical Conditioning

Classical conditioning is a learning process that occurs when two stimuli are repeatedly paired together; an initially neutral stimulus eventually elicits a response that was initially elicited by another stimulus.