In applying the LCM rule, the inventory of surgical supplies would be valued at:
A)$115.
B)$90.
C)$80.
D)$69.$80 designated market value is less than $90 cost.

Question

Quizplus · Accepted Answer

The LCM (Lower of Cost or Market) rule states that inventory should be valued at the lower of its historical cost or its market value. Here, the market value of $80 is lower than the cost of $90, so the inventory should be valued at $80.

In Applying the LCM Rule, the Inventory of Surgical Supplies