(a) Moberg Company sells three different categories of tools (small, medium, and large). The cost and market value of its inventory of tools are as follows.

Determine the value of the company’s inventory under the lower-of-cost-or-market approach.
(b) Janus Company understated its 2013 ending inventory by $31,000. Determine the impact this error has on ending inventory, cost of goods sold, and owner’s equity in 2013 and2014.

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Market Value Cost Small $ 64,000 290,000 $ 73,000 260,000 Medium Large