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Question
If a company values inventory at the lower of cost or market, which of the following is the value of merchandise inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole.
| Item | Inventory Quantity | Unit Cost Price | Unit Market Price |
| Product C | 420 | $ 6 | $ 5 |
| Product D | 370 | 12 | 14 |
a. $6,960
b. $7,700
c. $6,540
d. $7,280
Answer
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