A company's cost of inventory was $219,500.Due to phenomenal demand the market value of its inventory increased to $221,700.This company should record the inventory at its market value.

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Taneesha mrock · Accepted Answer

Final Answer : False, Explanation :  According to generally accepted accounting principles (GAAP), inventory should be recorded at the lower of cost or market value. Since the cost ($219,500) is lower than the market value ($221,700), the inventory should be recorded at its cost.

A company's cost of inventory was $219,500.Due to phenomenal demand the market value of its inventory increased to $221,700.This company should record the inventory at its market value.

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