Question: A company reports inventory using the lower-of-cost-or-market method. Below is information related to its year-end inventory: Inventory Item A Item B Quantity 100 50 Cost

A company reports inventory using the lower-of-cost-or-market method. Below is information related to its year-end inventory: Inventory Item A Item B Quantity 100 50 Cost Market $35 $40 25 15 (a) Calculate ending inventory under lower-of-cost-or-market AND (b) record any necessary adjustment to inventory

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