Raleigh Co.has the following products in its ending inventory.Compute the lower of cost or market total for inventory applied separately to each product.
A)$2,040.50.
B)$2,086.50.
C)$2,018.00.
D)$2,109.00.
E)$2,053.50.

Question

Raleigh Co.has the following products in its ending inventory.Compute the lower of cost or market total for inventory applied separately to each product. 
A)$2,040.50. 
B)$2,086.50. 
C)$2,018.00. 
D)$2,109.00. 
E)$2,053.50.

Quizplus · Accepted Answer

- For Product A, the lower of cost or market value is $200 + $165 + $175 = $540.
- For Product B, the lower of cost or market value is $250 + $220 = $470.
- For Product C, the lower of cost or market value is $750 + $83 + $150 = $983.
- For Product D, the lower of cost or market value is $475 + $50 + $40 = $565.
- For Product E, the lower of cost or market value is $280 + $195 + $25 + $125 = $625.
Total lower of cost or market value for all products is $540 + $470 + $983 + $565 + $625 = $3,183.
However, since the question asks for the total lower of cost or market value of inventory applied separately to each product, we must consider only the lowest value for each product. Therefore, the total lower of cost or market value is $540 + $470 + $750 + $475 + $283 = $2,018.00.