Answer:
Product Units Cost per Unit Market per Unit
Helmets 25 $53 $57
Bats 18 $81 $75
Shoes 39 $98 $94
Uniforms 43 $39 $39
when the lower of cost or market rule is used to determine the ending inventory, you must choose the which is lower, the purchase cost or the market value (reposition cost). In this case, the purchase cost is lower for helmets and uniforms, but the market cost is lower for bats and shoes.
ending inventory:
Product Units LCM Total
Helmets 25 $53 $1,325
Bats 18 $75 $1,350
Shoes 39 $94 $3,666
Uniforms 43 $39 $1,677
Total $8,018
