In applying the LCM rule, the inventory of boots would be valued at:
A)$135,000.
B)$133,000.
C)$130,000.
D)$105,000.$130,000 designated market value is less than $133,000 cost.

Question

Quizplus · Accepted Answer

According to the LCM rule, inventory should be valued at the lower of its cost or market value. The market value for the boots is $130,000 which is lower than the cost of $133,000. Therefore, the boots inventory should be valued at $130,000.

In Applying the LCM Rule, the Inventory of Boots Would