The following inventory data are available for Nordic Ski Shop at December 31. 1. Determine the value

Question:

The following inventory data are available for Nordic Ski Shop at December 31.
1. Determine the value of using the lower-of-cost-or-market method applied to
(a) Individual items and
(b) Total inventory.
2. Prepare any journal entries required to adjust the if lower of cost or market is applied to
(a) Individual items and
(b) Total inventory.
____________________________________________________Cost.................Market
Skis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....$110,000.............$124,000
Boots . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,000................76,000
Ski equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000................33,000
Ski apparel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000................24,000
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...