using lower of cost or market rule, what is the total valuation for each invento
ID: 2415336 • Letter: U
Question
using lower of cost or market rule, what is the total valuation for each inventory item and the total inventory valuation?
item quantity on hand unit cost when acquired (FIFO) replacement cost a 100 $ 40.00 $ 35.00 b 150 $ 50.00 $ 52.00 c 25 $ 100.00 $ 80.00 d 300 $ 60.00 $ 62.00 e 700 $ 15.00 $ 12.00Explanation / Answer
Calculation of total valuation of each inventory using lower of cost of market rule
Item quantity on hand unit cost when acquired (FIFO) Replacement cost Valuation of inventory a 100 $40 $35 $3500 b 150 $50 $52 $7500 c 25 $100 $80 $2000 d 300 $60 $62 $18000 e 700 $15 $12 $8400 TOTAL $39400