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.

Inventory Item	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)
Birch	47	$219	$217
Cypress	27	82	83
Mountain Ash	47	198	220
Spruce	11	162	187
Willow	42	59	50

Inventory at the Lower of Cost or Market
Inventory Item	Total Cost	Total Market	Total Lower of C or M
Birch	$	$	$
Cypress
Mountain Ash
Spruce
Willow
Total	$	$	$

Answer 1

A B C D E 1 Inventory at the Lower of Cost or Market Total Lower of C or M $10,199 $2,214 $9,306 $1,782 $ 2,100 $ 25,601 2 Total Inventory Item Total Cost Market Birch Cypress Mountain Ash Spruce Willow Total 10,293 10,199 5 2,214 2,241 9,306 6 10,340 1,782 7 2,057 2,100 2,478

Working note:

A. В C D E 1 2 Inventory at the Lower of Cost or Market Inventory Item Total Cost Total Market Total Lower of C or M Birch 47*219 47*217 10199 Cypress Mountain Ash -27*82 -27*83 2214 5 47*198 47*220 9306 б Spruce - 11*162 - 11*187 1782 7 42*50 Willow 42*59 2100 SUM(E4:E8) Total 10 N st