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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
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 24 I $166 $179 Model B 44 58 34 Model C 11 147 164 Class 2: Model D 16 67 91 Model E 38 98 95 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 per Unit (Net Realizable Value) Cost Market Inventory Quantity Lower of Cost or Market Droduct Inventory at the Lower of Cost or Market Market Value Inventory Cost per Unit Product Quantity per Unit (Net Realizable Value) Cost Market Lower of Cost or Market Model A Model B I 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 Cost Market Value per Unit (Net Realizable Value) Cost Market Inventory Quantity Lower of Cost or Market per Unit Product 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 Cost Inventory Quantity per Unit Market Value per Unit (Net Realizable Value) Cost Market Lower of Cost or Market Product Class 1 : Model A Model B 9 Model C Subtotal o Class 2: Model D Model E Subtotal Total 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 Market Value Inventory Cost per Unit Cost Market Quantity per Unit (Net Realizable Value) Lower of Cost or Market Product Model A Model B Model C Model D Model E Total
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