In applying the LCM rule, the inventory of supplies would be valued at:
A)$45,000.
B)$54,000.
C)$41,000.
D)$42,000.$45,000 cost is equal to the designated market value.

Question

Quizplus · Accepted Answer

The LCM rule states that inventory must be valued at the lower of its historical cost or market value. In this case, the historical cost is $45,000 and the market value is also $45,000, so the inventory would be valued at $45,000.

In Applying the LCM Rule, the Inventory of Supplies Would