Exhibit 10 Determining Inventory at Lower of Cost or Market (LCM) Market Value Lower of per Unit Inventory Cost per Quantity Unit Cost or Market (LCM) Item (Net Realizable Value) Cost Market Echo Foxtrot Sierra Tango Total 400 120 600 280 $10.25 22.50 8.00 14.00 $ 9.50 24.10 7.75 14.75 $ 4,100 2,700 4,800 3,920 $15,520 $ 3,800 2,892 4,650 4,130 $15,472 $ 3,800 2,700 4,650 3,920 $ 15,070 (1) Applied Individual Item by Item Class 1: Echo Foxtrot Subtotal 400 120 $10.25 22.50 $ 9.50 24.10 $ 4,100 2.700 $ 6,800 $ 3,800 2,892 $ 6692 $ 6,692 (2) Applied Class by Class Class 2: Sierra Tango Subtotal Total 600 280 8.00 14.00 7.75 14.75 $ 4,800 3920 $ 8,720 $15.520 $ 4,650 4130 $ 8,780 $15.472 8,720 $15,412 400 120 $ 9.50 24.10 $ 4,100 Echo Foxtrot Sierra Tango Total $10.25 22.50 8.00 14.00 2,700 (3) Applied in Total 600 280 7.75 14.75 $ 3,800 2,892 4,650 4,130 $15.472 4,800 3,920 $15.520 $15,472 Show Me HOW Calculator 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 by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 10 Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) JFWI 88 $28 $26 SAW9 186 14 18