The following inventory data are available for Alpine Ski Shop at December 31.

1. Determine the value of ending inventory 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 ending inventory if lower of cost or market is applied to

(a) individual items and

(b) total inventory.

Transcribed Image Text:

Cost Market Skis Boots $60,000 $65,000 37,500 35,000 Ski equipment 15,000 14,000 Ski apparel. 9,500 13,500