Merchandise Inventory on the Balance Sheet Based on the data below, how would the merchandise inventory appear on the balance sheet, assuming that the lower of cost or market is used and the cost is determined by the FIFO method? Total cost: $43,120 Total market: $43,260 Lower of cost or market: $41,880 The merchandise inventory would appear in the current assets section, as follows: Merchandise inventory-at lower of cost (FIFO) or market .......... $ .