Lower-of-Cost-or-Market Valuation The following inventory data are available for Nordic Ski Shop at…

Lower-of-Cost-or-Market Valuation

The following inventory data are available for Nordic Ski Shop at December 31.

1. Determine the value of ending inventory using the lower-of-cost-or-market method applied to (a) individual items and (b) total inventory.

2. Prepare any journal entries required to adjust the ending inventory if lower of cost or market is applied to (a) individual items and (b) total inventory.

Cost

Market

Skis

$55,000

$62,000

Boots

42,500

38,000

Ski equipment

18,000

16,500

Ski apparel

10,000

12,000