Laurie Company applied FIFO to its inventory and got the following results for its ending inventory.
DVRs 140 units at a cost per unit of $60
DVD players 210 units at a cost per unit of $75
iPods 175 units at a cost per unit of $80
The cost of purchasing units at year-end was DVRs $68 DVD players $70 and iPods $76.
Instructions
Determine the amount of ending inventory at lower-of-cost-or-market.

Question

Zybrea Knight · Accepted Answer

Final Answer :   Market   Value   Lower-of-Cost-   Cost  ‾  Market ‾  Market value ‾  DVRs  $ 8 , 400 $ 9 , 520 $ 8 , 400  DVD players  15 , 750 14 , 700 14 , 700  Ipods  14 , 000 13 , 300 13 , 300  Total inventory  $ 38 , 150 $ 37 , 520 $ 36 , 400 \begin{array}{lrrr} & & 	ext { Market }\ & & 	ext { Value } & 	ext { Lower-of-Cost- } \ &  \underline{	ext { Cost }} &  \underline{ 	ext { Market} }  &    \underline{	ext { Market value}}\	ext { DVRs }  &  \$ 8,400  &  \$ 9,520  &  \$ 8,400 \	ext { DVD players }  &  15,750  &  14,700  &  14,700 \	ext { Ipods }  &  14,000  &  13,300  &  13,300 \	ext { Total inventory }  &  \$ 38,150  &  \$ 37,520  &  \$ 36,400\end{array}  DVRs   DVD players   Ipods   Total inventory  ​  Cost  ​ $8 , 400 15 , 750 14 , 000 $38 , 150 ​  Market   Value   Market ​ $9 , 520 14 , 700 13 , 300 $37 , 520 ​  Lower-of-Cost-   Market value ​ $8 , 400 14 , 700 13 , 300 $36 , 400 ​

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