The following data concerns inventory at Mike's Boat & Bike Shop:

INSTRUCTIONS
Determine the amount that the company should report as the inventory valuation at cost or market, whichever is lower. Use each of the following three valuation methods:

1. Lower of cost or market for each item separately.
2. Lower of total cost or total market.
3. Lower of total cost or total market by group.
Analyze:
Which valuation method will yield the highest net income?

Transcribed Image Text:

Quantity Unit Cost Market Value Motor Bike Department 9,810 10,275 2,500 9,775 11,375 2,850 Model 705 16 26 Model 766 Boat Departmet Model BX14 5,300 7,150 5,110 5,400 7,010 5,350 Model BX16