Lower of Cost or Market
The following information pertains to the company’s ending inventory:
|
|
Original |
Selling |
Selling |
Replacement |
Normal |
|
|
Cost |
Price |
Cost |
Cost |
Profit |
|
Item A |
$ 575 |
$ 700 |
$ 50 |
$ 600 |
$100 |
|
Item B |
700 |
820 |
80 |
550 |
150 |
|
Item C |
1,180 |
1,250 |
100 |
1,100 |
300 |
Apply lower of cost or market accounting to each inventory item individually. What total amount should be reported as inventory in the balance sheet?