270 CHAPTERs Working Capital 8-3 Inventory Cost and Income CASE why is the lower of cost or market rule used Sieel Company, a wholesaler that has been in business for two b. In general, w yeas, purchases its inventories from various suppliers. During report inventory? the wo years, cach purchase has been at a lower price than the c. At what amount should Steel's inventories be reported on the balance sheet? Explain the application of the lower of cost previous purchase Steel uses the lower of FIFO cost or market method to value market rule in this situation. imventories The original cost of the inventories is above replacement d. What would have been the effect on ending inventories and net the normal profit margin is below the replacement cost Required a. In general, what criteria should be used to determine which the net realizable value.The net realizable value less income for the second year had Steel used the lower of average cost or market inventory method instead of the lower of FIFO cost or market inventory method? Why? costs should be included in inventory? CASE 8-4 Uncollectible Accounts Anth Company has sign 270 CHAPTERs Working Capital 8-3 Inventory Cost and Income CASE why is the lower of cost or market rule used Sieel Company, a wholesaler that has been in business for two b. In general, w yeas, purchases its inventories from various suppliers. During report inventory? the wo years, cach purchase has been at a lower price than the c. At what amount should Steel's inventories be reported on the balance sheet? Explain the application of the lower of cost previous purchase Steel uses the lower of FIFO cost or market method to value market rule in this situation. imventories The original cost of the inventories is above replacement d. What would have been the effect on ending inventories and net the normal profit margin is below the replacement cost Required a. In general, what criteria should be used to determine which the net realizable value.The net realizable value less income for the second year had Steel used the lower of average cost or market inventory method instead of the lower of FIFO cost or market inventory method? Why? costs should be included in inventory? CASE 8-4 Uncollectible Accounts Anth Company has sign