Question - Ross Company had the following inventory at the end of the year:
|
|
Quantity
|
Unit Price
|
|
Cost
|
Market
|
|
Valves:
|
|
|
|
|
Model Q
|
180
|
$11
|
$9
|
|
Model R
|
150
|
10
|
12
|
|
Model S
|
120
|
7
|
9
|
|
Gaskets:
|
|
|
|
|
Model Alpha
|
60
|
100
|
105
|
|
Model Beta
|
30
|
85
|
90
|
|
Model Gamma
|
90
|
90
|
95
|
Ross Company uses the lower of cost or market method (LCM) to value its inventory.
Required: Determine the cost of ending inventory by using the lower of cost or market method applied to each category of inventory.