Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 10. Cost Per Inventory Quantity Market Value per Unit (Net Realizable Value) Product Unit Class 1 : Model A 42 $77 $74 Model B 14 122 144 Model C 23 68 93 Class 2: Model D 13 161 168 Model E 29 215 204 a. Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. Inventory at the Lower of Cost or Market Market Value Cost per Unit Cost Market Inventory Quantity Lower of Cost or Market Product per Unit (Net Realizable Value) Model A 42 $ 77 $ 74 3,234 5,698 $ 3,234 X Model B 14 122 144 1,708 17,568 1,708 Model C 23 68 93 1,564 6,324 X 1,564 Model D 13 161 168 2,093 27,048 X 2,093 Model E 29 215 204 4,085 43,860 X 4,085 X $ Total 12,684 X 100,498 X 12,684 X b. Determine the value of the inventory at the lower of cost or market applied to each class of inventory. Inventory at the Lower of Cost or Market Market Value Cost per Unit Cost Market Lower of Cost or Market Inventory Quantity per Unit Product (Net Realizable Value) Class 1: Model A 42 77 74 3,234 $ 5,698 X Model B 14 122 144 1,708 17,568 X Model C 23 68 93 1,564 6,324 x Subtotal $ 6,506 $ 29,590 $ 6,506 Class 2: Model D 13 161 168 $ 2,093 27,048 X Model E 29 215 204 4,085 43,860 X Subtotal 6,178 X $ 70,908 X 6,178 Total 12,684 $ $ 100,498 X 12,684 X c. Determine the value of the inventory at the lower of cost or market applied to total inventory. Inventory at the Lower of Cost or Market Market Value Cost per Unit Cost Market Lower of Cost or Market Inventory Quantity Product per Unit (Net Realizable Value) Model A 42 $ 77 $ 74 3,234 5,698 X Model B 14 122 144 1,708 17,568 X Model C 23 68 93 1,564 6,324 X Model D 13 161 168 2,093 27,048 X x x Model E 29 215 204 4,085 43,860 Total 12,684 $ 100,498 $ 12,684 X