Nelson Corporation Sells Three Different Products When Applying the Lower of Cost or Market Rule to Available

Multiple Choice

Nelson Corporation sells three different products. The following information is available on December 31: $$\begin{array} { | c | c | c | c | } \hline \text { Inventory Item } & \text { Units } & \text { Cost per unit } & \text { Market value per unit } \\\hline X & 300 & \$ 4.00 & \$ 3.50 \\\hline Y & 600 & \$ 2.00 & \$ 1.50 \\\hline Z & 1,500 & \$ 3.00 & \$ 4.00 \\\hline\end{array}$$ When applying the lower of cost or market rule to each item, what will Nelson's total ending inventory balance be?

A) $6,900
B) $6,450
C) $7,950
D) $6,600