Question

Will medal!! Help ASAP

The cost of inventory at the end using LIFO is $22,560 and the market price is $20,530. Using the lower-of-cost or market rule, inventure cost should appear in the financial statement?
A)$22,560
B)$20,530
C) $43,090
D) $2,030
Help help help

Answer 1

@Mathmate

Answer 2

Please explain to me what is the "lower-of-cost or market rule"!

Answer 3

i'll explain one moment

Answer 4

The lower-of-cost-or-market rule implies that the cost of the ending inventory that appears on the financial statements is the lower of its cost (which is calculated using one of the four inventory methods) or its market value.

The market value of an item is the current price that is charged for a similar item of merchandise in the market. Market value is the cost at which an inventory item could be replaced at the date of preparing a financial statement.

Answer 5

Does that explanation (helps to) answer your question?

Answer 6

i believe its B)20,530 since that would be the market value if i read and understood it correctly?

Answer 7

@mathmate

Answer 8

Exactly! Well-done!

Answer 9

you're the best thank you. i have two more ill post maybe you can guide me again :)

Answer 10

No problem, I'll help if I'm online and available!