1.Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the balance sheet?

a.$80,000

b.$75,000

c.$70,000

d.$60,000

2.

On the basis of the following data, what is the value of the total inventory at the lower of cost or market. Apply lower of cost or market to each inventory item.

Item	Inventory Quantity	Unit Cost Price	Unit Market Price
Product C	300	$ 6	$ 5
Product D	420	12	14

$6,300

b.$6,540

c.$6,840

d.$7,380