Martinez Company's ending inventory includes the following items. Market per Unit $ 64 82 Product Helmets Bats Shoes Uniforms Units 32 25 46 50 Cost per Unit $ 60 114 105 46 Helmets Bats Shoes Uniforms Compute the lower of cost or market for ending inventory applied separately to each product. Inventory Items Units 32 25 46 50 Per Unit Cost 101 46 Market $ 60 $ 114 105 46 64 82 101 46 $ Cost Total Market 0 $ 0 LCM Applied to Items

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…