A Company Reports Inventory Using the Lower-Of-Cost-Or-Market Method Calculate Ending Inventory Under Lower-Of-Cost-Or-Market and Record Any Necessary Adjustment

question 111

Short Answer

A company reports inventory using the lower-of-cost-or-market method.Below is information related to its year-end inventory:
$$\begin{array} { l c c c } \text { Inventory } & \text { Quantity } & \text { Cost } & \text { Market } \\\text { Item A } & 100 & \$ 25 & \$ 30 \\\text { Item B } & 50 & 30 & 20\end{array}$$
Calculate ending inventory under lower-of-cost-or-market and record any necessary adjustment to inventory.

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