Questions: On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item.

To determine the value of the inventory at the lower of cost or market (LCM) for each inventory item, we need to compare the unit cost price with the unit market price and select the lower value for each item. Then, we multiply this lower value by the inventory quantity to get the total LCM for each item.

Let's go through the data provided for each item:

1. Gear x

   • Inventory Quantity: 175
   • Unit Cost Price: $33
   • Unit Market Price: $29

   For Gear x, the lower of cost or market is $29 (since $29 < $33).

   • Total LCM for Gear x = 175 units * $29/unit = $5,075

2. Geary

   • Inventory Quantity: 225
   • Unit Cost Price: $27
   • Unit Market Price: $28

   For Geary, the lower of cost or market is $27 (since $27 < $28).

   • Total LCM for Geary = 225 units * $27/unit = $6,075

Now, let's summarize the total LCM for both items:

• Total LCM for Gear x: $5,075
• Total LCM for Geary: $6,075

Therefore, the total value of the inventory at the lower of cost or market is: \[ \$5,075 + \$6,075 = \$11,150 \]

So, the value of the inventory at the lower of cost or market is $11,150.