Lower of Cost or Market The following information is taken from Aden Company\'s
ID: 2420234 • Letter: L
Question
Lower of Cost or Market
The following information is taken from Aden Company's records:
What is the correct inventory value if the company applies the lower of cost or market to each of the following? When required, round your answers to the nearest cent.
1. Individual items:
Product A $ 480
Product B 375
Product C 750
Product D 640
Product E 1968
Total inventory value $ 4213
2. Groups of items:
Group 1 $ 867.50
Group 2 1400
Group 3 1968
Total inventory value $ 4235.50
3. The inventory as a whole:
Total inventory value $ ? ( need help with this one )
Explanation / Answer
The most appropriate method is calculation of inventory value item wise.
Group wise inventory value can also be calculated, since the inventory wise data is available, the most appropriate is inventory wise.
Total Inventory Value = $4213
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