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 300 $140 $125 Model B 500 90 112 Model C 150 60 59 Class 2: Model D 800 120 115 Model E 400 140 145 Question Content Area 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 fill in the blank ed85d6fc7fd9059_1 300 $fill in the blank ed85d6fc7fd9059_2 140 $fill in the blank ed85d6fc7fd9059_3 125 $fill in the blank ed85d6fc7fd9059_4 $fill in the blank ed85d6fc7fd9059_5 $fill in the blank ed85d6fc7fd9059_6 Model B fill in the blank ed85d6fc7fd9059_7 500 fill in the blank ed85d6fc7fd9059_8 90 fill in the blank ed85d6fc7fd9059_9 112 fill in the blank ed85d6fc7fd9059_10 fill in the blank ed85d6fc7fd9059_11 fill in the blank ed85d6fc7fd9059_12 Model C fill in the blank ed85d6fc7fd9059_13 150 fill in the blank ed85d6fc7fd9059_14 60 fill in the blank ed85d6fc7fd9059_15 59 fill in the blank ed85d6fc7fd9059_16 fill in the blank ed85d6fc7fd9059_17 fill in the blank ed85d6fc7fd9059_18 Model D fill in the blank ed85d6fc7fd9059_19 800 fill in the blank ed85d6fc7fd9059_20 120 fill in the blank ed85d6fc7fd9059_21 115 fill in the blank ed85d6fc7fd9059_22 fill in the blank ed85d6fc7fd9059_23 fill in the blank ed85d6fc7fd9059_24 Model E fill in the blank ed85d6fc7fd9059_25 400 fill in the blank ed85d6fc7fd9059_26 140 fill in the blank ed85d6fc7fd9059_27 145 fill in the blank ed85d6fc7fd9059_28 fill in the blank ed85d6fc7fd9059_29 fill in the blank ed85d6fc7fd9059_30 Total blank blank blank $fill in the blank ed85d6fc7fd9059_31 $fill in the blank ed85d6fc7fd9059_32 $fill in the blank ed85d6fc7fd9059_33 Feedback Area Feedback Set up a table with 3 columns for the current information on number of units, unit cost price, and unit market price. Multiply the number of units by the unit cost price and enter the total cost amount in the 4th column. Multiply the number of units by the unit market price and enter the total market amount in the 5th column. Then enter the lower of the two amounts from the 4th and 5th columns in the 6th column. Finally, total the 4th, 5th and 6th columns. The total of column 6 shows the total lower-of-cost-or-market applied on an item-by-item basis. Exhibit 10: Determining Inventory at Lower of Cost or Market (LCM) Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Cost Market LCM Echo 400 $10.25 $9.50 $ 4,100 $ 3,800 $ 3,800 Foxtrot 120 22.50 24.10 2,700 2,892 2,700 Sierra 600 8.00 7.75 4,800 4,650 4,650 Tango 280 14.00 14.75 3,920 4,130 3,920 Total $15,520 $15,472 $15,070 Question Content Area 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: blank blank blank blank blank blank Model A fill in the blank fa57d7f6e03c064_1 $fill in the blank fa57d7f6e03c064_2 $fill in the blank fa57d7f6e03c064_3 $fill in the blank fa57d7f6e03c064_4 $fill in the blank fa57d7f6e03c064_5 blank Model B fill in the blank fa57d7f6e03c064_6 fill in the blank fa57d7f6e03c064_7 fill in the blank fa57d7f6e03c064_8 fill in the blank fa57d7f6e03c064_9 fill in the blank fa57d7f6e03c064_10 blank Model C fill in the blank fa57d7f6e03c064_11 fill in the blank fa57d7f6e03c064_12 fill in the blank fa57d7f6e03c064_13 fill in the blank fa57d7f6e03c064_14 fill in the blank fa57d7f6e03c064_15 blank Subtotal blank blank blank $fill in the blank fa57d7f6e03c064_16 $fill in the blank fa57d7f6e03c064_17 $fill in the blank fa57d7f6e03c064_18 Class 2: blank blank blank blank blank blank Model D fill in the blank fa57d7f6e03c064_19 fill in the blank fa57d7f6e03c064_20 fill in the blank fa57d7f6e03c064_21 $fill in the blank fa57d7f6e03c064_22 $fill in the blank fa57d7f6e03c064_23 blank Model E fill in the blank fa57d7f6e03c064_24 fill in the blank fa57d7f6e03c064_25 fill in the blank fa57d7f6e03c064_26 fill in the blank fa57d7f6e03c064_27 fill in the blank fa57d7f6e03c064_28 blank Subtotal blank blank blank $fill in the blank fa57d7f6e03c064_29 $fill in the blank fa57d7f6e03c064_30 fill in the blank fa57d7f6e03c064_31 Total blank blank blank $fill in the blank fa57d7f6e03c064_32 $fill in the blank fa57d7f6e03c064_33 $fill in the blank fa57d7f6e03c064_34 Feedback Area Feedback Under the class method, a company applies the lower of cost or market to the total cost and total market for each class of items rather than each individual inventory item. In this case, you will have a lower of cost or market value for Class 1 and Class 2 that will be used to determine the total lower of cost or market. Question Content Area 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 Costper Unit Market Value per Unit (Net Realizable Value) Cost Market Lower of Cost or Market Model A fill in the blank a2b3fcfba030f9d_1 $fill in the blank a2b3fcfba030f9d_2 $fill in the blank a2b3fcfba030f9d_3 $fill in the blank a2b3fcfba030f9d_4 $fill in the blank a2b3fcfba030f9d_5 blank Model B fill in the blank a2b3fcfba030f9d_6 fill in the blank a2b3fcfba030f9d_7 fill in the blank a2b3fcfba030f9d_8 fill in the blank a2b3fcfba030f9d_9 fill in the blank a2b3fcfba030f9d_10 blank Model C fill in the blank a2b3fcfba030f9d_11 fill in the blank a2b3fcfba030f9d_12 fill in the blank a2b3fcfba030f9d_13 fill in the blank a2b3fcfba030f9d_14 fill in the blank a2b3fcfba030f9d_15 blank Model D fill in the blank a2b3fcfba030f9d_16 fill in the blank a2b3fcfba030f9d_17 fill in the blank a2b3fcfba030f9d_18 fill in the blank a2b3fcfba030f9d_19 fill in the blank a2b3fcfba030f9d_20 blank Model E fill in the blank a2b3fcfba030f9d_21 fill in the blank a2b3fcfba030f9d_22 fill in the blank a2b3fcfba030f9d_23 fill in the blank a2b3fcfba030f9d_24 fill in the blank a2b3fcfba030f9d_25 blank Total blank blank blank $fill in the blank a2b3fcfba030f9d_26 $fill in the blank a2b3fcfba030f9d_27 $fill in the blank a2b3fcfba030f9d_28 Feedback Area Feedback Under the lower of cost or market applied to total inventory, you determine the total cost and the total market for the entire inventory. Then, compare the two values. Feedback Area Feedback Partially correct Check My Work