Iris Company has provided the following information regarding two of its items of inventory at year-end: • There are 100 units of Item A, having a cost of $20 per unit, a selling price of $24 and a cost to sell of $6 per unit.
• There are 50 units of Item B, having a cost of $50 per unit, a selling price of $56 and a cost to sell of $4 per unit.
How much is the ending inventory using lower of cost or net realizable value on an item-by-item basis?
A)$4,100.
B)$4,300.
C)$4,400.
D)$4,500.

Question

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The Answer of Iris Company has provided the following information regarding two of its items of inventory at year-end: • There are 100 units of Item A, having a cost of $20 per unit, a selling price of $24 and a cost to sell of $6 per unit.
• There are 50 units of Item B, having a cost of $50 per unit, a selling price of $56 and a cost to sell of $4 per unit.
How much is the ending inventory using lower of cost or net realizable value on an item-by-item basis?
A)$4,100.
B)$4,300.
C)$4,400.
D)$4,500.

Iris Company Has Provided the Following Information Regarding Two of Its