Asked by Peyton Bowers on Jul 02, 2024
Verified
A small-appliance merchant shows an inventory of 120 Microwave Ovens at a cost of $79.80 and a market value of $79.40. Compute the inventory value at the lower of cost or market.
Lower Of Cost
An accounting principle where inventory is recorded at the lower of either its original cost or its current market value.
Market Value
The current price at which an asset or service can be bought or sold in an open market.
Microwave Ovens
Kitchen appliances that use microwave radiation to cook or heat food efficiently and quickly.
- Apply the concept of lower of cost or market to value inventory.
Verified Answer
AR
Learning Objectives
- Apply the concept of lower of cost or market to value inventory.