Using the information below,determine the ending inventory value applying the lower-of-cost-or-market method.
$\begin{array}{llll}\text { Inventory Item } & \text { Quantity } &{\text { Cost }} &\text { Market }\\hline
\text { Cutlets } & 200 & \$ 12 & \$ 14 \
\text { Chops } & 400 & \$ 16 & \$ 14 \
\text { Shanks } & 300 & \$ 15 & \$ 12
\end{array}$

Question

Quizplus · Accepted Answer

The lower-of-cost-or-market method values inventory at the lower of its cost or market value. For Cutlets, the cost is $12 (lower than market $14), for Chops, the market is $14 (lower than cost $16), and for Shanks, the market is $12 (lower than cost $15). The ending inventory value is (200 x $12) + (400 x $14) + (300 x $12) = $11,600.

Using the Information Below,determine the Ending Inventory Value Applying the Lower-Of-Cost-Or-Market