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Lower-of-Cost-or-Market Method On the basis of the following data: Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) JFW1 6,330 $10
Lower-of-Cost-or-Market Method On the basis of the following data: Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) JFW1 6,330 $10 $11 SAW9 1,140 36 34 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 9. F G c T D TE Market Value Inventory Cost per per Unit 3 Item Quantity Unit (Net Realizable Value) Cost 4 Echo 400 $10.25 $ 9.50 $ 4,100 5 Foxtrot 120 22.50 24.10 2,700 6 Sierra 600 8.00 7.75 4.800 7 Tango 280 14.00 14.75 3.920 8 Total $15,520 Exhibit 9 Determining Inventory at Lower of Cost or Market (LCM) Market $ 3,800 2,892 4,650 4,130 $15,472 LCM $ 3,800 2.700 4.650 3,920 $15.070 9
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