Question
QUESTION 3 Cullumber Company sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31,
QUESTION 3
Cullumber Company sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2017:
| Coffee Bean Type | Units of inventory | Unit cost | Market Value/Unit |
| Coffea Arabica | 15,200 | $5.00 | $4.60 |
| Coffea robusta | 6,100 | $4.00 | $5.50 |
Calculate the value Cullumber should report for ending inventory on December, 31, 2017 after applying the lower-of-cost-or-market rule.
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Sm Auditing Integrated Appr Review Copy
Authors: ARENS LO, EBBECKE
7th Edition
0135914396, 978-0135914397
