If a Company Values Inventory at the Lower of Cost

question 5

Multiple Choice

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

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

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