Inventory reported on the balance sheet of a manufacturing company consists of: raw materials and the cost of labor to convert the raw materials to finished products, raw materials, the cost of labor to convert the raw materials, and an allocated portion of manufacturing overhe the cost of the raw materials used. raw materials, the cost of labor to convert the raw materials, and all major corporate overhead costs Question 10 Under the lower-of-cost-or-market rule, market is: the selling price of inventory items. the original cost paid for inventory. used to value inventory if it is less than its recorded cost. the amount of cash the company expects to collect from the sale of an inventory item