The Following Information Concerns Several of the Inventory Items at DC's

question 52

Short Answer

The following information concerns several of the inventory items at DC's. $$\begin{array} { | c | c | c | c | } \hline \text { Description } & \text { Quantity } & \text { Unit Cost } & \text { Market Value } \\\hline \text { Department A: } & & & \\\hline \text { Model XP 235 } & 50 & \$ 22.90 & \$ 21.50 \\\hline \text { Model XP 376 } & 75 & 26.75 & 25.00 \\\hline \text { Model XP 522 } & 60 & 20.00 & 21.00 \\\hline \text { Department B: } & & & \\\hline \text { Model ZY 114 } & 15 & 75.00 & 75.00 \\\hline \text { Model ZY 232 } & 24 & 100.00 & 92.00 \\\hline \text { Model ZY 183 } & 12 & 145.00 & 142.50 \\\hline\end{array}$$ Determine the amount of inventory to be reported on the financial statements using the lower of cost or market method of valuation under each of the following options.
1. Lower of cost or market for each item separately
2. Lower of total cost or total market
3. Lower of total cost or total market by department

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Definitions:

Square Foot

A measurement of area equal to a square that measures one foot on each side.

Hourly Wage

Compensation paid to employees based on the number of hours worked.

Schedule Of Reinforcement

A pattern or timing of delivering rewards or consequences that follows a desired behavior, varying in type such as fixed or variable intervals or ratios.

Conditioned Reinforcer

A stimulus that has acquired the capacity to reinforce behaviors through its association with a primary reinforcer.