Answer:
D. $2,310
Explanation:
Ending inventory or Merchandise Inventory is the value of goods available for sale at the end of the accounting period valued at the lowest of total purchase cost or total replacement cost.
In this problem, total purchase cost (P) is:
[tex]P= \$165*14 = \$2,310[/tex]
Total replacement cost (R) is:
[tex]R= \$171*14 = \$2,394[/tex]
Since purchase cost is lower than replacement cost, the amount reported as Merchandise Inventory on the balance sheet should be $2,310
