contestada

Ames Trading Company has the following products in its ending inventory. Product Quantity Cost per Unit Market per Unit Mountain bikes 15 $ 720 $ 660 Skateboards 30 200 270 Gliders 24 770 720 Compute lower of cost or market for inventory applied separately to each product.

Respuesta :

The total Lower of Cost or Market is $38870.

What is  Lower of Cost or Market?

  • Companies using U.S. GAAP must value their inventories using the lower of cost or market (LCM) technique.
  • The lower of the original cost or market value is used to value inventory in the lower of cost or market approach, as the name suggests.

We have,

Mountain Bikes: 15 units, cost: $710, market: $660, total cost: $10,650, total market: $9900, LCM: $9900

Skateboards: 20 units, cost: $260, market: $290, total cost: $7800, total market: $8700, LCM: $7800

Gliders: 29 units, cost: $810, market: $730, total cost: $23490, total market: $21170, LCM: $21170

Total cost: $41940

Total market: $39770

Total LCM: $38870

Learn more about Lower of Cost or Market with the help of the given link:

https://brainly.com/question/15070130?referrer=searchResults

#SPJ4

Otras preguntas