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.

Product	Inventory Quantity	Cost Per Unit	Market Value per Unit (Net Realizable Value)
Class 1:
Model A	28	$66	$62
Model B	28	126	133
Model C	36	166	184
Class 2:
Model D	38	249	243
Model E	32	57	70

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

Product	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)	Cost	Market	Lower of Cost or Market
Model A	fill in the blank 6611a2f7a062fd6_1	$fill in the blank 6611a2f7a062fd6_2	$fill in the blank 6611a2f7a062fd6_3	$fill in the blank 6611a2f7a062fd6_4	$fill in the blank 6611a2f7a062fd6_5	$fill in the blank 6611a2f7a062fd6_6
Model B	fill in the blank 6611a2f7a062fd6_7	fill in the blank 6611a2f7a062fd6_8	fill in the blank 6611a2f7a062fd6_9	fill in the blank 6611a2f7a062fd6_10	fill in the blank 6611a2f7a062fd6_11	fill in the blank 6611a2f7a062fd6_12
Model C	fill in the blank 6611a2f7a062fd6_13	fill in the blank 6611a2f7a062fd6_14	fill in the blank 6611a2f7a062fd6_15	fill in the blank 6611a2f7a062fd6_16	fill in the blank 6611a2f7a062fd6_17	fill in the blank 6611a2f7a062fd6_18
Model D	fill in the blank 6611a2f7a062fd6_19	fill in the blank 6611a2f7a062fd6_20	fill in the blank 6611a2f7a062fd6_21	fill in the blank 6611a2f7a062fd6_22	fill in the blank 6611a2f7a062fd6_23	fill in the blank 6611a2f7a062fd6_24
Model E	fill in the blank 6611a2f7a062fd6_25	fill in the blank 6611a2f7a062fd6_26	fill in the blank 6611a2f7a062fd6_27	fill in the blank 6611a2f7a062fd6_28	fill in the blank 6611a2f7a062fd6_29	fill in the blank 6611a2f7a062fd6_30
Total				$fill in the blank 6611a2f7a062fd6_31	$fill in the blank 6611a2f7a062fd6_32	$fill in the blank 6611a2f7a062fd6_33

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

Product	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)	Cost	Market	Lower of Cost or Market
Class 1:
Model A	fill in the blank 5759bcfb8fa0023_1	$fill in the blank 5759bcfb8fa0023_2	$fill in the blank 5759bcfb8fa0023_3	$fill in the blank 5759bcfb8fa0023_4	$fill in the blank 5759bcfb8fa0023_5
Model B	fill in the blank 5759bcfb8fa0023_6	fill in the blank 5759bcfb8fa0023_7	fill in the blank 5759bcfb8fa0023_8	fill in the blank 5759bcfb8fa0023_9	fill in the blank 5759bcfb8fa0023_10
Model C	fill in the blank 5759bcfb8fa0023_11	fill in the blank 5759bcfb8fa0023_12	fill in the blank 5759bcfb8fa0023_13	fill in the blank 5759bcfb8fa0023_14	fill in the blank 5759bcfb8fa0023_15
Subtotal				$fill in the blank 5759bcfb8fa0023_16	$fill in the blank 5759bcfb8fa0023_17	$fill in the blank 5759bcfb8fa0023_18
Class 2:
Model D	fill in the blank 5759bcfb8fa0023_19	fill in the blank 5759bcfb8fa0023_20	fill in the blank 5759bcfb8fa0023_21	$fill in the blank 5759bcfb8fa0023_22	$fill in the blank 5759bcfb8fa0023_23
Model E	fill in the blank 5759bcfb8fa0023_24	fill in the blank 5759bcfb8fa0023_25	fill in the blank 5759bcfb8fa0023_26	fill in the blank 5759bcfb8fa0023_27	fill in the blank 5759bcfb8fa0023_28
Subtotal				$fill in the blank 5759bcfb8fa0023_29	$fill in the blank 5759bcfb8fa0023_30	fill in the blank 5759bcfb8fa0023_31
Total				$fill in the blank 5759bcfb8fa0023_32	$fill in the blank 5759bcfb8fa0023_33	$fill in the blank 5759bcfb8fa0023_34

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

Product	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)	Cost	Market	Lower of Cost or Market
Model A	fill in the blank e6e8db0a207402b_1	$fill in the blank e6e8db0a207402b_2	$fill in the blank e6e8db0a207402b_3	$fill in the blank e6e8db0a207402b_4	$fill in the blank e6e8db0a207402b_5
Model B	fill in the blank e6e8db0a207402b_6	fill in the blank e6e8db0a207402b_7	fill in the blank e6e8db0a207402b_8	fill in the blank e6e8db0a207402b_9	fill in the blank e6e8db0a207402b_10
Model C	fill in the blank e6e8db0a207402b_11	fill in the blank e6e8db0a207402b_12	fill in the blank e6e8db0a207402b_13	fill in the blank e6e8db0a207402b_14	fill in the blank e6e8db0a207402b_15
Model D	fill in the blank e6e8db0a207402b_16	fill in the blank e6e8db0a207402b_17	fill in the blank e6e8db0a207402b_18	fill in the blank e6e8db0a207402b_19	fill in the blank e6e8db0a207402b_20
Model E	fill in the blank e6e8db0a207402b_21	fill in the blank e6e8db0a207402b_22	fill in the blank e6e8db0a207402b_23	fill in the blank e6e8db0a207402b_24	fill in the blank e6e8db0a207402b_25
Total				$fill in the blank e6e8db0a207402b_26	$fill in the blank e6e8db0a207402b_27	$fill in the blank e6e8db0a207402b_28

• Previous
• Next