(a) Tracy Company sells three different types of home heating stoves (gas, wood, and pellet).
The cost and market value of its inventory of stoves are as follows.

Determine the value of the company’s inventory under the lower-of-cost-or-market approach.

(b) Visual Company overstated its 2013 ending inventory by $22,000. Determine the impact this error has on ending inventory, cost of goods sold, and stockholders’ equity in 2013 and 2014.

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Gas Wood Pellet Cost $ 84,000 250,000 112,000 Market $ 79,000 280,000 101,000