Lower-of-Cost-or-Market Method On the basis of the data shown below: Determine t
ID: 2568555 • Letter: L
Question
Lower-of-Cost-or-Market Method
On the basis of the data shown below:
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.
$
Item InventoryQuantity Cost per
Unit Market Value per Unit
(Net Realizable Value) MX62 60 $39 $37 TX24 113 19 21 EXHIBIT 9 Market Value Determining Inventory at Lower of Cost or Market (LCM) Total $ 4,100 $ 3,800 4,8004,650 Inventory Cost per Unit Net Realizable Val CM 4 Echo 5 Foxtrot 6 Sierra 400 120 600 280 10.25 22.50 8.00 14.00 9.50 24.10 7.75 14.75 2,7002,8922,700 4,650 3,920 3,9204,130 8 Total
Explanation / Answer
Item Inventory Cost per Market Value per Unit Total Quantity Unit (Net Realizable Value) Cost Market LCM MX62 60 39 37 2340 2220 2220 TX24 113 19 21 2147 2373 2147 Total 4487 4593 4367
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.