At year-end, the Commonwealth Corporation holds 500 pieces of XY inventory costing $9 each and...
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At year-end, the Commonwealth Corporation holds 500 pieces of XY inventory costing $9 each and 700 pieces of AB inventory costing $11 each. XY inventory has flooded the market, and Commonwealth can now buy these same units for $6 each. AB inventory has not proven to be as popular as anticipated, and a unit can only be sold for $12 even after spending $2 extra on painting it a different color. In applying lower of cost or market, what should be reported for inventory by Commonwealth? a. $10,000 b. $10,700 c. $11,400 d. $12,100
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