Answer:
$5,200
Explanation:
The amount which is to be reported in the balance sheet is computed as:
Amount = Inventory × Current market value
where
As the presently the market price is $26. So, this amount will be considered while computing the inventory of the company.
Inventory is 200 units
Current market value is $26 per unit
Putting the values above:
Amount = 200 units × $26 per unit
Amount = $5,200
Therefore, $5,200 amount will be recorded in the balance sheet for the inventory amount.
The amount that the company's inventory should be reported on the balance sheet is $5,200.
Using this formula
Total lower of cost or market = Lower of cost or market per unit × Number of units in inventory
Where:
Lower of cost or market per unit=$26
Number of units in inventory=200 units
Let plug in the formula
Total lower of cost or market= $26 × 200 units
Total lower of cost or market= $5,200
Inconclusion the amount that the company's inventory should be reported on the balance sheet is $5,200.
Learn more here:
https://brainly.com/question/15561520
