Using the lower of cost or market valuation for ending


Question - During physical stock take in one of its sports shops, Severino recorded the following:

Product Units Cost per unit Market value per unit

Helmets  35ea.    $45        $48

Bats  51ea.    $78  $75

Shoes  48pr.    $82  $79

Balls  30pks.    $40  $41

Uniforms  80ea.    $36  $38

Using the lower of cost or market valuation for ending inventory, applied separately for each item of stock, prepare the journal to adjust the inventory balance, if necessary.

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Accounting Basics: Using the lower of cost or market valuation for ending
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