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 illustrated in Exhibit 9. Unit Market Value per Unit (Net Realizable Value) $125 112 59 115 145 Inventory Quantity Unit Product Cost Price 300 500 150 800 400 $140 90 60 120 140 Model A Model B Model C Model D Model E Inventory at the Lower of Cost or Market PrtSc FI0 0

Answer 1

Answer:

		Per unit		Total
Product	Units	Cost	Market	Cost	Market(NRV)	LCM applied to products
Model A	300	140	125	42,000	37,500	37,500
Model B	500	90	112	45,000	56,000	45,000
Model C	150	60	59	9,000	8,850	8,850
Model D	800	120	115	96,000	92,000	92,000
Model E	400	140	145	56,000	58,000	56,000
				2,48,000	2,52,350