Lower-of-cost-or-market method

On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 10.

Commodity Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value)

JFW1 138 $47 $50

SAW9 286 24 22

\begin{tabular}{lccc} Commodity & InventoryQuantity & CostperUnit & MarketValueperUnit(NetRealizableValue) \\ \hline JFW1 & 138 & $47 & $50 \\ SAW9 & 286 & 24 & 22 \end{tabular} Exhibit 10 Determining Inventory at Lower of Cost or Market (LCM)