Answer:
$6,900
Explanation:
Given:
Company’s normal selling price for its product = $30 per unit
current FIFO inventory = 300 units
Purchasing cost of the inventory = $26 per unit
Selling price = $25 per unit
Net realizable value = $23 per unit
Now,
Under Cost or Market Price
The lower price is Net realizable value i.e $23
Hence,
The value of this company's inventory at the lower of cost or market will be
= $23 × Units in the inventory
= $23 × 300
= $6,900
