Martinez Company's ending inventory includes the following items.

Product Units Cost per Unit Market per Unit

Helmets 24 $ 50 $ 54

Bats 17 78 72

Shoes 38 95 91

Uniforms 42 36 36

*Compute the lower of cost or market for ending inventory applied separately to each product.

Per Unit Total

Inventory Items Units Cost Market Cost Market LCM Applied to Items

Helmets 24 $50 $54

Bats 17 78 72

Shoes 38 95 91

Uniforms 42 36 36

$0

Answer and Explanation:

The computation of the lower of cost or market for ending inventory applied separately to each product is presented below:

Product Units (A) Cost per Unit Market per Unit Minimum cost (B) Value (A * B)

Helmets 24 $50 $54 $50 $1,200

Bats 17 $78 $72 $72 $1,224

Shoes 38 $95 $91 $91 $3,458

Uniforms 42 $36 $36 $36 $1,512

Total cost $7,394

First we take the lower unit of cost or market and after than the lower unit should be multiplied with the number of units so that the ending inventory could come