1. 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.

   Product	Inventory Quantity	Cost Per Unit	Market Value per Unit (Net Realizable Value)
   Class 1:
   Model A	19	$299	$295
   Model B	23	78	86
   Model C	44	237	241
   Class 2:
   Model D	9	78	83
   Model E	9	244	228

   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
   Product	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)	Cost	Market	Lower of Cost or Market
   Model A		$	$	$	$	$
   Model B
   Model C
   Model D
   Model E
   Total				$	$	$

   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
   Product	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)	Cost	Market	Lower of Cost or Market
   Class 1:
   Model A		$	$	$	$
   Model B
   Model C
   Subtotal				$	$	$
   Class 2:
   Model D				$	$
   Model E
   Subtotal				$	$
   Total				$	$	$

   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
   Product	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)	Cost	Market	Lower of Cost or Market
   Model A		$	$	$	$
   Model B
   Model C
   Model D
   Model E
   Total				$	$	$

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