PR 6-6A Lower-of-cost-or-market inventory Data on the physical inventory of Ashwood Products Company as of December 31 follows: Obj. 6 Ttal LCM, $39,873 Market Value per Unit (Net Realizable Value) $ 57 Inventory Quantity Description B12 38 E41 18 180 G19 33 126 L88 550 18 N94 7 400 P24 18 90 R66 250 8 T33 140 20 752 Z16 15 Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Next-to-the-Last Purchases Invoice Last Purchases Invoice Quantity Purchased Quantity Purchased Unit Cost Unit Cost Description B12 $ 60 $ 59 30 30 20 180 178 35 E41 129 25 128 20 G19 560 10 563 10 L88 7 500 8 500 N94 21 50 22 80 P24 260 4 248 5 R66 19 100 21 100 T33 745 9 750 10 Z16 (Continued) 326 Chapter 6 Inventories Determine the inventory at cost and also at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet, and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows: Instructions 1. Draw a line through the quantity, and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase 3. Total the cost and market columns and insert the lower of the two totals in the LCM column. The first item on the inventory sheet has been completed as an example. Inventory Sheet December 31 Total Market Value per Unit (Net Realizable Value) $57 Inventory Quantity Cost per Unit Market LCM Cost Description $1,710 $1,800 812 $60 38 30 472 456 57 8 59 $2,272 $2,166 $2,166