Using the Information Below,determine the Ending Inventory Value Applying the Lower-Of-Cost-Or-Market

question 147

Multiple Choice

Using the information below,determine the ending inventory value applying the lower-of-cost-or-market method.
$\begin{array}{llll}\text { Inventory Item } & \text { Quantity } &{\text { Cost }} &\text { Market }\\\hline\text { Cutlets } & 200 & \$ 12 & \$ 14 \\\text { Chops } & 400 & \$ 16 & \$ 14 \\\text { Shanks } & 300 & \$ 15 & \$ 12\end{array}$

• A)$13,300.
• B)$12,000.
• C)$11,600.
• D)$13,700.

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Definitions:

Marketplace

A physical or digital venue where buyers and sellers come together to exchange goods, services, or information.

Marginal Buyer

The consumer who might leave the market if the price was any higher, indicating their participation is sensitive to price changes.

Willingness To Pay

The greatest sum a consumer is ready to spend for a good or service, showcasing the importance they assign to it.

External Cost

Costs that are not borne by the producers or users of a good or service, but rather by society or third parties, often not reflected in market prices.