Question

On the basis of the following data: Commodity Inventory Quantity Unit Cost Price Unit Market Price AL65 40 $292 $291 CA22 36 85 95 LA98 29 122 99 SC16 46 136 123 UT28 14 51 47 Determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 10. Inventory at the Lower of Cost or Market Commodity Total Cost Total Market Total Lower of C or M AL65 $ $ $ CA22 LA98 SC16 UT28 Total $ $ $

Answer 1

Inventory at the Lower of Cost or Market:

Commodity	Total cost	Total market	Total Lower of cost or market
AL65	$11,680 (40*$292)	$11,640 (40*$291)	$11,640
CA22	3,060 (36*$85)	3,420 (36*$95)	3,060
LA98	3,538 (29*$122)	2,871 (29*$99)	2,871
SC16	6,256 (46*$136)	5,658 (46*$123)	5,658
UT28	714 (14*$51)	658 (14*$47)	658
Total	$25,248	$24,247	$23,887