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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,
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 Market Value per Unit Cost per Unit (Net Realizable Value) JFW1 142 $59 $61 SAW9 298 28 25 Exhibit 10 Determining Inventory at Lower of Cost or Market (LCM) Cost per Unit Lower of Cost or Market (LCM) Item Cost Market Market Value per Unit (Net Realizable Value) $ 9.50 24.10 7.75 14.75 Inventory Quantity 400 120 600 280 Echo Foxtrot Sierra Tango Total $10.25 22.50 8.00 14.00 $ 4,100 2,700 4,800 3,920 $15,520 $ 3,800 2,892 4,650 4,130 $15,472 $ 3,800 2,700 4,650 3,920 $15,070 (1) Applied Individual Item by Item Class 1: Echo Foxtrot Subtotal 400 120 $10.25 22.50 $ 9.50 24.10 $ 4,100 2,700 $ 6,800 $ 3,800 2,892 $ 6,692 $ 6,692 (2) Applied Class by Class 600 7.75 Class 2: Sierra Tango Subtotal Total 8.00 14.00 280 14.75 $ 4,800 3,920 $ 8,720 $15,520 $ 4,650 4,130 $ 8,780 $15,47 8,720 $15,412 400 $10.25 120 $ 9.50 24.10 22.50 Echo Foxtrot Sierra Tango Total 600 280 (3) Applied in Total 8.00 14.00 $ 4,100 2,700 4,800 3,920 $15.520 7.75 14.75 $ 3,800 2,892 4,650 4,130 $15,472 $15,472 Activa Go to SE
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