# Question: 6. Inventory is reported in the financial statements at a. cost. b. market c. the higher-of-cost-or-market. d. the lower-of-cost-or-market. Jason’s Bookstore had 500 units on hand at January 1, costing \$9 each. Purchases and sales during the month of January were as follows: Date Purchases Jan. 14 Sales 17 375 @ 14 250 @ \$10 25 250 @ \$11 260 @ \$16 Jason does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is: a. \$3,285. b. \$3,650. c. \$3,900. d. \$4,015. Laurel’s Bookstore had 500 units on hand at January 1, costing \$9 each. Purchases and sales during the month of January were as follows: Date Purchases Sales Jan. 14 375 @ \$14 250 @ \$10 25 250 \$11 260 @ \$16 Laurel does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the LIFO method is: a. \$3,285. b. \$3,650 C. \$3,900. d. \$4,015.–Free Chegg Question Answer

`Transcribed text From Image: 6. Inventory is reported in the financial statements at a. cost. b. market c. the higher-of-cost-or-market. d. the lower-of-cost-or-market. Jason's Bookstore had 500 units on hand at January 1, costing \$9 each. Purchases and sales during the month of January were as follows: Date Purchases Jan. 14 Sales 17 375 @ 14 250 @ \$10 25 250 @ \$11 260 @ \$16 Jason does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the FIFO method is: a. \$3,285. b. \$3,650. c. \$3,900. d. \$4,015. Laurel's Bookstore had 500 units on hand at January 1, costing \$9 each. Purchases and sales during the month of January were as follows: Date Purchases Sales Jan. 14 375 @ \$14 250 @ \$10 25 250 \$11 260 @ \$16 Laurel does not maintain perpetual inventory records. According to a physical count, 365 units were on hand at January 31. The cost of the inventory at January 31, under the LIFO method is: a. \$3,285. b. \$3,650 C. \$3,900. d. \$4,015.`

`Answer:`

Answer- 6)- Inventory is reported in the financial statements at = the lower-of-cost-or-market.

Answer- 7)- The cost of ending inventory at January 31, under the FIFO method is = \$3900.

Explanation-

Answer- 7)- The cost of ending inventory at January 31, under the LIFO method is = \$3525.

Explanation-