LOWER OF COST OR MARKET Meredith’s Appliance Store has the following data for the items in its inventory at the end of the accounting period.

Item Number of Units Historical Cost per Unit Market Value per Unit Window air conditioner 15 $194 $110 Dishwasher 34 240 380 Refrigerator 27 382 605 Microwave 19 215 180 Washer (clothing) 36 195 290 Dryer (clothing) 21 168 245 Required:

Compute the carrying value of Meredith’s ending inventory using the lower of cost or market rule applied on an item-by-item basis.

Exercise