Reporting Inventory Under Lower of Cost or Market - Knight Company had the following inventory items on hand at the end of the year.
|
Quantity
|
Cost per Item
|
Replacement Cost per Item
|
|
Item A
|
70
|
$85
|
$100
|
|
Item B
|
30
|
60
|
55
|
Computing the lower of cost or market on an item-by-item basis, determine what amount would be reported on the balance sheet for inventory.