Question
The following information pertains to Hagen Metal Works ending inventory for the current year: Item Quantity Unit Cost Unit Market Value C 90 $ 24
The following information pertains to Hagen Metal Works ending inventory for the current year:
| Item | Quantity | Unit Cost | Unit Market Value |
|---|---|---|---|
| C | 90 | $ 24 | $ 16 |
| D | 75 | 22 | 20 |
| K | 40 | 25 | 28 |
| M | 22 | 15 | 17 |
Required
Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to (1) each individual inventory item and (2) the inventory in aggregate.
Calculate the adjustment required under both methods, assuming the decline in value is immaterial.
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Financial Accounting Textbook For Students And Researchers
Authors: Mukhiddin Kalonov
1st Edition
6206174077, 978-6206174073
