The Following Information Concerns Several of the Inventory Items at DC's

The following information concerns several of the inventory items at DC's. $$\begin{array} { | c | c | c | c | } \hline \text { Description } & \text { Quantity } & \text { Unit Cost } & \text { Market Value } \\\hline \text { Department A: } & & & \\\hline \text { Model XP 235 } & 50 & \$ 22.90 & \$ 21.50 \\\hline \text { Model XP 376 } & 75 & 26.75 & 25.00 \\\hline \text { Model XP 522 } & 60 & 20.00 & 21.00 \\\hline \text { Department B: } & & & \\\hline \text { Model ZY 114 } & 15 & 75.00 & 75.00 \\\hline \text { Model ZY 232 } & 24 & 100.00 & 92.00 \\\hline \text { Model ZY 183 } & 12 & 145.00 & 142.50 \\\hline\end{array}$$ Determine the amount of inventory to be reported on the financial statements using the lower of cost or market method of valuation under each of the following options.
1. Lower of cost or market for each item separately
2. Lower of total cost or total market
3. Lower of total cost or total market by department

Correct Answer:

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1. $9,193
...

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