EXERCISE #1 (Inventory Method: Least Cost to Market): Hanes, Inc. uses the lowest cost-to-market method to value its shirt inventory and trousers presented below:

Merchandise	Inventory quantity	Unit cost	Unit price on the market
Blue shirt 001	400	12.25	11.75
Blue pant 001	200	21.00	23.00
Green shirt 001	500	7.00	6.25
Green pant 001	250	14.00	18.00

1. What will be the correct amount of inventory valuation for each commodity in the data? 2. Determine the amount to be reported in the inventory account using the lowest cost to market method.

	Quantity	Unit cost	Market by Unit	Total cost	MarketTotal	LCM
Blue shirt 001	400	12.25	11.75
Blue pant 001	200	21.00	23.00
Green shirt 001	500	7.00	6.25
Green pant 001	250	14.00	18.00
Amount to be reported in the inventory account