At year end, CurlZ, Inc.'s inventory consists of 270 bottles of CleanZ at $2 per bottle and 170 boxes of DyeZ at $14 per box. Market values are $2.30 per bottle for CleanZ and $12 per box for DyeZ. CurlZ should report its inventory at:

 $2,580

Explanation:

The computation of inventory is shown below:-

The inventory is to be value through lower cost and market value

Inventory items        Cost of                   Market value of    lower cost and

                                 inventories                inventories           market value

Bottles of Clean Z    $540                        $621                        $540

                                  (270 × $2)           (270 × $2.30)

Boxes of Dye Z          $2,380                     $2,040                  $2,040

                                  (170 × $14)           (170 × $12)

Total                                                                                           $2,580

b

explanation:

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