Chester Corp. ended the year carrying $18,711,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Chester Corp.

Chester Corp.

Had they sold their entire inventory at their current prices, the revenue that it would have brought to Chester Corp. is:

= $18,711,000.

Explanation:

a) Data:

Ending inventory at year-end = $18,711,000 at current prices

b) The current price represents the market value of each item of inventory being held by Chester Corp at the end of the year.  It is the price at which an item will be sold in the open market.  This implies that the revenue that would have been generated from the sale of the inventory will be equal to the carrying value of the ending inventory.

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