Question

Martinez Company's ending inventory includes the following items.

Product	Units	Cost per Unit				Market per Unit
Helmets	39		$	61			$	57
Bats	32			79				85
Shoes	53			98				102
Uniforms	57			43				43

	Per Unit Total Inventory Items Units Cost Market Cost Market LCM Applied to Items Helmets 39 $61 $57 Bats 32 79 85 Shoes 53 98 102 Uniforms 57 43 43 $0 $0

Answer 1

Solution:

		Per unit		Total	Total	LCM applied to
Inventory Items	Unit	Cost	Market	Cost	Market	Products	Whole
Helmets	39	$61	$57	$2,379	$2,223	$2,223
Bats	32	$79	$85	$2,528	$2,720	$2,528
Shoes	53	$98	$102	$5,194	$5,406	$5,194
Uniforms	57	$43	$43	$2,451	$2,451	$2,451
				$12,552	$12,800	$12,396	$12,800

* Lower of cost or market of inventory as a whole = $12,800

Lower of cost or market of inventory by product = $12,396