A company's total cost of inventory was $305,000 and its market value is $297,000. Under the lower cost or market, the amount reported should be $305,000.

Question

Quizplus · Accepted Answer

Under the lower cost or market (LCM) rule, the amount reported should be the lower of either cost or market value. In this case, market value is lower at $297,000, so the amount reported should be $297,000.

A Company's Total Cost of Inventory Was $305,000 and Its