Burton Supply Uses the Perpetual Inventory Method

Essay

Burton Supply uses the perpetual inventory method. At the end of the year Burton Supply had the following items in inventory.
Required:a)Determine the amount of inventory Burton Supply is showing on its books before any adjustment.b)Determine the amount of ending inventory using lower of cost or market applied to each individual inventory item.c)Determine the amount of ending inventory using lower of cost or market applied to the total stock of inventory in the aggregate.d)Which approach of applying the lower-of-cost-or-market rule (apply to each individual inventory item or apply to the entire stock of inventory in the aggregate)produces the smallest amount of total assets?