Question
Lower of Cost or Market The following information is taken from Aden Company's records: Product Group Units Cost/Unit Market/Unit A 1 600 $1.00 $0.80 B
Lower of Cost or Market
The following information is taken from Aden Company's records:
| Product | Group | Units | Cost/Unit | Market/Unit |
|---|---|---|---|---|
| A | 1 | 600 | $1.00 | $0.80 |
| B | 1 | 250 | 1.50 | 1.55 |
| C | 2 | 150 | 5.00 | 5.25 |
| D | 2 | 100 | 6.50 | 6.40 |
| E | 3 | 80 | 25.00 | 24.60 |
Required:
What is the correct inventory value if the company applies the lower of cost or market to each of the following? When required, round your answers to the nearest cent.
Individual items
| Product A | $ | |
| Product B | ||
| Product C | ||
| Product D | ||
| Product E | ||
| Total inventory value | $ |
Groups of items
| Group 1 | $ | |
| Group 2 | ||
| Group 3 | ||
| Total inventory value | $ |
The inventory as a whole
| Total inventory value | $ |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
