help:Tanzy Company’s ending inventory includes the following items.?

Question

Tanzy Company’s ending inventory includes the following items. Compute the lower of cost or market
for ending inventory
(a) as a whole and(b) applied separately to each product.

Product Units Cost Market
Helmets . . . . . . . . 22 $50 $54
Bats . . . . . . . . . . . 15 78 72
Shoes . . . . . . . . . . 36 95 91
Uniforms . . . . . . . 40 36 36

Answer 1

Helmets Cost $1,100 Market $1,188
Bats Cost $1,170 Market $1,080
Shoes Cost $3,420 Market $3,276
Uniforms Cost $1,440 Market $1,440

Total cost $7,130 Total market $6,984

Lower of cost or market
(a) as a whole $6,984 since it's lower than cost of $7,130

(b) applied separately to each product
Take the lower of either the cost or market for each of the products above
Helmets Cost $1,100
Bats Market $1,080
Shoes Market $3,276
Uniforms Cost $1,440 (same as mkt, either one will do)

Total of above $6,896