Question 1
Martinez company’s ending inventory includes the following items
Question 2
Martinez Company’s ending inventory includes the following items.
| Per Unit | |||
|---|---|---|---|
| Product | Units | Cost | Market |
| Helmets | 40 | $ 62 | $ 58 |
| Bats | 33 | 80 | 112 |
| Shoes | 54 | 99 | 103 |
| Uniforms | 58 | 44 | 44 |
Question 3
Answer to question 1
| Per Unit | Total | |||||
| Product | Units | Cost | Market | Cost | Market | LCM applied to: Products |
| Helmets | 34 | $56 | $52 | $1,904 | $1,768 | $1,768 |
| Bats | 27 | $74 | $80 | $1,998 | $2,160 | $1,998 |
| Shoes | 48 | $93 | $97 | $4,464 | $4,656 | $4,464 |
| Uniforms | 52 | $38 | $38 | $1,976 | $1,976 | $1,976 |
| $10,342 | $10,560 | $10,206 |
Answer to question 2
The total value of ending inventory calculated using the lower of cost or market value is $12,858
Explanation:
| Product | Cost ($) | Market ($) | Lower of cost or market ($) |
|---|---|---|---|
| Helmets | 2,480 (40 x 62) | 2,320 (40 x 58) | 2,320 |
| Bats | 2,640 (33 x 80) | 3,696 (33 x 112) | 2,640 |
| Shoes | 5,346 (54 x 99) | 5,562 (54 x 103) | 5,346 |
| Uniforms | 2,552 (58 x 44) | 2,552 (58 x 44) | 2,552 |
| Total | 13,018 | 14,130 | 12,858 |
Answer to question 3
