Lower-of-cost-or-market inventory

Data on the physical inventory of Ashwood Products Company as of December 31 follow:

Description	Inventory Quantity	Market Value per Unit (Net Realizable Value)
B12	38	$57
E41	18	180
G19	33	126
L88	18	550
N94	400	7
P24	90	18
R66	8	250
T33	140	20
Z16	15	752

Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows:

Description	Last Purchases Invoice Quantity Purchased	Last Purchases Invoice Unit Cost	Next-to- the-Last Purchases Invoice Quantity Purchased	Next-to- the-Last Purchases Invoice Unit Cost
B12	30	$60	30	$59
E41	35	178	20	180
G19	20	128	25	129
L88	10	563	10	560
N94	500	8	500	7
P24	80	22	50	21
R66	5	248	4	260
T33	100	21	100	19
Z16	10	750	9	745

Required:

Determine the inventory at cost and also at the lower of cost or market applied on an item-by-item basis, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet, and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows:

1. Insert the quantity and unit cost of the last purchase.
2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase.
3. Total the cost and market columns and insert the lower of the two totals in the LCM column.

The first item on the inventory sheet has been completed as an example.

Description	Inventory Quantity	Inventory Quantity	Cost Per Unit	Market Value per Unit (Net Realizable Value)	Total Cost	Total Market	Total LCM
B12	38	30	$60	$57	$1,800	$1,710
B12		8	59	57	472	456
B12					2,272	2,166	$2,166