Question

Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form ilustrated in Exhibit 9. Inventory Cost per Inventory Quantity Market Value per Unit (Net Realizable Value) Item Unit Birch $173 $148 Cypress 202 Mountain Ash 189 278 155 299 Spruce Willow 221 Inventory at the Lower of Cost or Market Inventory Item Total Cost Total Market Total Lower of Cor Birch Cypress Mountain Ash Spruce Willow

Answer 1

LCM Inventory Item Birch Cypress Mountain Ash Spruce Willow Total Cost Total Market Total Lower of C or M 3460 2960 2960 3969 4242 3969 5004 5382 5004 7750 6850 6850 7735 8330 7735 27918 27764 26518 Total

Portable DVD Players FIFO Perpetual Purchase Unit Cost Total Cost Cost of goods sold Units Unit Cost Total Cost Units Date Apr-01 Apr-10 Apr-15 Units 50 15 35 57 1995 Balance Unit Cost Total Cost 57 2850 57 855 855 1740 1380 29 60 1740 Apr-20 15 855 360 840 60 Apr-24 Apr-30 32 63 2016 60 540 540 2016 2556 63 Purchases 3756 COGS 4050 Ending LIFO Perpetual Purchase Unit Cost Total Cost Cost of goods sold Units Unit Cost Total Cost Units Units Date Apr-01 _57 Apr-10 35 57 1995 Apr-15 29 60 1 740 Balance Unit Cost Total Cost 2850 855 57 855 1740 855 480 513 Apr-20 21 60 1260 15 Apr-24 480 342 Apr-30 32 63 2016 32 57 63 Ending 513 2016 2529 Purchases 3756 COGS 4077

Particular Item Weighted Average Units Date Jan-01 Mar-18 May-02 54000 Purchase Cost of goods sold Unit Cost Total Cost Units Unit Cost Total Cost Units 30000 24000 30 720000 6000 31 1674000 6000 54000 60000 45000 30.90 1390500 15000 32.1 674100 15000 21000 36000 Purchases 2348100 COGS 2110500 Balance Unit Cost Total Cost 30 900000 30 180000 30 180000 31 1674000 30.90 1854000 30.90 463500 30.90 463500 32.1 674100 31.6 1137600 Ending 1137600 Aug-09 Oct-20 21000