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. Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) FW1 64 $58 562 SAWO 126 2 25 Check My Work All work saved Previous Exhibit 10 Determining Inventory at Lower of Cost or Market (LCM) Inventory Cost per Market Value per Unit Lower of Cost or Market Item Quantity Unit (Net Realizable Value) Cost Market (LCM) Echo 400 $10.25 $9.50 $ 4,1001 $3,800 $3,800 Foxtrot 120 22.50 24.10 (1) 2,700 2,892 2,700 Applied Sierra 600 8.00 7.75 4,800 4,650 4,650 Individual Item Tango 280 14.00 14.75 3,920 4130 3,920 by Item Total $15,520 $15,472 $15,070 Class 1: Echo 400 $10.25 Foxtrot 120 22.50 $9.50 24.10 Subtotal $4,100 2,700 $ 6,800 $3,000 2,892 56692 $ 6,692 (2) Class 2: Applied Class by Class Sierra 600 1.00 Tango 280 14.00 7.75 14.75 $4,800 1920 Subtotal $8,720 $ 4,650 4130 780 8,720 Total $15.520 $15,472 $15,412 Echo 400 $10.25 $9.50 $ 4,100 $3,000 Foxtrot 120 22.50 24.10 2,700 2,892 Sierra 600 8.00 7.75 4,000 4650 (3) Applied in Total Tango 200 14.00 14.75 3,920 4110 Total $15.520 515472 $15,472