Exhibit 10 Determining Inventory at Lower of Cost or Market (LCM) Market Value per Unit Inventory Cost per Quantity Unit Lower of 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 400 Class 1: Echo Foxtrot Subtotal $10.25 22.50 $ 9.50 24.10 120 $ 4,100 2,700 $ 6,800 $ 3,800 2,892 $ 6,692 $ 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 3,920 $ 8,720 $15,520 $ 4,650 4,130 $ 8,780 $15,472 8,720 $ 15,412 Echo Foxtrot 400 120 $10.25 22.50 $ 9.50 24.10 $ 4,100 2,700 $ 3,800 2,892 (3) Applied in Total Sierra Tango Total 600 280 8.00 14.00 7.75 14.75 4,800 3,920 $15.520 4,650 4,130 $15472 $ 15,472 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. Market Value per Unit (Net Realizable Value) Item Inventory Quantity Cost per Unit JFW1 146 $45 $40 SAW9 291 23 26