Question

Raleigh Co. has the following products in its ending inventory. Compute the lower of cost or market total for inventory applied separately to each product.

Jelly: Quantity: 150 Cost per unit: $2.00 Market per unit: 2.15 Jam: Quantity: 370 Cost per unit: $2.65 Market per unit: 2.50 Marmalade: Quantity: 260 Cost per unit: $3.10 Market per unit: 3.05

A. $2,040.50.

B. $2,086.50.

C. $2,018.00.

D. $2,109.00.

E. $2,053.50.

Answer 1

Answer:

C. $2,018.00.

Explanation:

The computation of the lower cost or market value is shown below:

For Jelly

= 150 units × $2 per unit

= $300

For Jam

= 370 units  $2.50

= $925

And, for Marmalade

= 260 units × $3.05

= $793

So, the total inventory is

= $300 + $925 + $793

= $2,018

It is come by multiplying the quantity of each one by its lower cost or market value per unit