5. Lower-of-cost-or-market method On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item, as shown in the Exhibit 10 example below. Inventory Quantity Cost per Unit Item Market Value per Unit (Net Realizable Value) $125 Steeler 10 80 $140 Panther 23 120 90 112 49er 17 30 75 74 Giants 19 75 88 86 Falcons 21 60 140 145 per Unit Exhibit 10 Determining Inventory at Lower of Cost or Market (LCM) A B D E TIF G 1 Market Value 2 Inventory Cost per Total 3 Item Quantity Unit (Net Realizable Value) Cost Market LCM 400 $10,25 $ 9.50 $ 4,100 $ 3,800 $ 3,800 5 Foxtrot 120 22 50 24.10 2,700 2,892 2,700 6 Sierra 600 8.00 7.75 4,800 4,650 4.650 280 14.00 14.75 3,920 4.130 8 Total 3.920 $155201 $15.472515.070 4 Echo 7 Tango