Q9

Need this solved asap. Please help me. Thank you.

Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 10. Inventory Cost Per Market Value per Unit Unit Quantity Product (Net Realizable Value) Class 1: Model A 300 $140 $125 Model B 500 90 112 Model C 150 60 59 Class 2: Model D 800 120 115 Model E 400 140 145 a. Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. Inventory at the Lower of Cost or Market Market Value per Unit (Net Realizable Value) Inventory Lower of Cost or Market Cost Cost Market per Unit Product Quantity Model A Model B Model C Model D Model E Total b. Determine the value of the inventory at the lower of cost or market applied to each class of inventory Inventory at the Lower of Cost or Market Market Value per Unit (Net Realizable Value) Inventory Quantity Cost Cost Market Lower of Cost or Market per Unit Product Class 1 Model A Model B Model C Subtotal Class 2: Model D Model E Subtotal Total c. Determine the value of the inventory at the lower of cost or market applied to total inventory. Inventory at the Lower of Cost or Market Market Value per Unit (Net Realizable Value) Inventory Costper Unit Cost Market Lower of Cost or Market Product Quantity Model A Model B Model C Model D Model E Total Exhibit 10 Determining Inventory at Lower of Cost or Market (LCM) Market Value Lower of per Unit (Net Realizable Value) Inventory Cost per Cost or Market Item Quantity Unit Cost Market (LCM) $ 4,100 $ 3,800 Echo $9.50 3,800 400 $10.25 (1) Applied Individual Item 22.50 2,700 2,892 Foxtrot 120 24.10 2,700 7.75 Sierra 600 8.00 4,800 4,650 4,650 4,130 $15,472 Tango 280 14.00 14.75 3,920 3,920 $15,070 by Item Total $15,520 Class 1: $ 4,100 Echo $10.25 9.50 3,800 400 22.50 Foxtrot 120 24.10 2,700 $ 6,800 2,892 $6,692 Subtotal (2) Applied Class by Class $6,692 Class 2: 8.00 4,800 $4,650 Sierra 600 7.75 Tango 4,130 $ 8,780 $15,472 280 14.00 14.75 3,920 $ 8,720 $15,520 Subtotal 8,720 Total $15,412 $ 4,100 $ 3,800 Echo 9.50 400 $10.25 (3) Applied in Total 24.10 Foxtrot 120 22.50 2,700 2,892 Sierra 600 8.00 7.75 4,800 4,650 14.00 Tango Total 280 14.75 3,920 4,130 $15,472 $15,472 $15,520