E6-18 Lower-of-cost-or-market inventory

On the basis of the following data, dtermine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9.

Commodity Inventory Quantity Unit Cost Price Unit Market Price

Buffalo 35 $115 $120

Dakota 67 90 75

Frontier 8 300 280

Midwest 83 40 30

Rainbow 100 90 94

Exhibit 9 form illustration:

A

B

C

D

E

F

G

1

Unit

Unit

Total

2

Inventory

Cost

Market

3

Item

Quality

Price

Price

Cost

Market

LCM

4

A

5

B

6

C

7

D

8

Total

9