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

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