Optix Camera Shop uses the lower-of-cost-or-market basis for its inventory. The

Q: Optix Camera Shop uses the lower-of-cost-or-market basis for its inventory. The

Item Units Cost Market Lower of Cost-Market Inventory Value Minolta 5 176 165 165 825 Cannon 10 141 174 141 1,410 Vivitar 13 130 104 104 1,352 Kodak 19 123 135 123 2,337 Inventory Cost 5,924 Item Units Cost Market Lower of Cost-Market Inventory Value Minolta 5 176 165 165 825 Cannon 10 141 174 141 1,410 Vivitar 13 130 104 104 1,352 Kodak 19 123 135 123 2,337 Inventory Cost 5,924

ID: 2422366 • Letter: O

Question

Optix Camera Shop uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31.

Item Units Unit Cost Market

Cameras:

Minolta 5 $176 $165

Canon 10 141 174

Light meters:

Vivitar 13 130 104

Kodak 19 123 135

Determine the amount of the ending inventory by applying the lower-of-cost-or-market basis.

Explanation / Answer

Item

Units

Cost

Market

Lower of Cost-Market

Inventory Value

Minolta

176

165

825

Cannon

141

174

141

1,410

Vivitar

130

104

1,352

Kodak

123

135

123

2,337

Inventory Cost

5,924