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) Prepare the journal entry necessary to adjust inventory. d) Determine the amount of ending inventory using lower of cost or market applied to the total stock of inventory in the aggregate. e) 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?
What will be an ideal response?
a) $18,860.00
b) $18,340.00
c) 
d) $18,620.00
e) Applying the lower-of-cost-or-market rule to each individual inventory item results in the smallest total assets.
a), b), c), and d)
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