Applying the lower of cost or market to each item of inventory, what should the total inventory value be for the following items
$$\begin{array} { | c | c | c | c | c | c | }
\hline \text { Item } & \begin{array} { c }
\text { Inventory } \
\text { Quantity }
\end{array} & \begin{array} { c }
\text { Cost per } \
\text { Unit }
\end{array} & \begin{array} { c }
\text { Market value } \
\text { perUnit }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Cost }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Market }
\end{array} \
\hline \mathrm { A } & 300 & \$ 15.00 & \$ 14.50 & \$ 4,500 & \$ 4,350 \
\hline \mathrm { B } & 200 & \$ 14.00 & \$ 15.00 & \$ 2,800 & \$ 3,000 \
\hline \mathrm { C } & 100 & \$ 17.00 & \$ 17.50 & \$ 1,700 & \$ 1,750 \
\hline
\end{array}$$
A) $8,850
B) $9,000
C) $9,100
D) $9,250

Question

Applying the lower of cost or market to each item of inventory, what should the total inventory value be for the following items
 $$\begin{array} { | c | c | c | c | c | c | } 
\hline \text { Item } & \begin{array} { c } 
\text { Inventory } \
\text { Quantity }
\end{array} & \begin{array} { c } 
\text { Cost per } \
\text { Unit }
\end{array} & \begin{array} { c } 
\text { Market value } \
\text { perUnit }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Market }
\end{array} \
\hline \mathrm { A } & 300 & \$ 15.00 & \$ 14.50 & \$ 4,500 & \$ 4,350 \
\hline \mathrm { B } & 200 & \$ 14.00 & \$ 15.00 & \$ 2,800 & \$ 3,000 \
\hline \mathrm { C } & 100 & \$ 17.00 & \$ 17.50 & \$ 1,700 & \$ 1,750 \
\hline
\end{array}$$  
A) $8,850
B) $9,000
C) $9,100
D) $9,250

Quizplus · Accepted Answer

The total inventory value, applying the lower of cost or market rule to each item, is calculated by summing the lower value between the total cost and total market value for each item. For item A, the lower value is $4,350; for item B, it's $2,800; and for item C, it's $1,700. Adding these together gives $4,350 + $2,800 + $1,700 = $8,850.

Applying the Lower of Cost or Market to Each Item