On the basis of the following data, what is the value of the total inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. $$\begin{array} { | l | c | c | c | }
\hline \text { Item } & \text { Inventory Quantity } & \text { Unit Cost Price } & \text { Unit Market Price } \
\hline \text {product C } & 300 & \$ 6 & \$ 5 \
\hline \text { product D } & 420 & 12 & 14 \
\hline
\end{array}$$
A) $7,380
B) $6,840
C) $6,540
D) $6,300

Question

On the basis of the following data, what is the value of the total inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. $$\begin{array} { | l | c | c | c | } 
\hline \text { Item } & \text { Inventory Quantity } & \text { Unit Cost Price } & \text { Unit Market Price } \
\hline \text {product C } & 300 & \$ 6 & \$ 5 \
\hline \text { product D } & 420 & 12 & 14 \
\hline
\end{array}$$  
A) $7,380
B) $6,840
C) $6,540
D) $6,300

Quizplus · Accepted Answer

The total inventory value is calculated by taking the lower of cost or market for each item. For product C, the lower value is $5 (market price), so 300 units x $5 = $1,500. For product D, the lower value is $12 (cost price), so 420 units x $12 = $5,040. Total inventory value = $1,500 + $5,040 = $6,540.

On the Basis of the Following Data, What Is the Value