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 9.
Inventory Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Birch 100 $125 $120 Cypress 75 100 108 Mountain Ash 80 90 86Spruce 130 74 80 Willow 60 105 98
Answer:
Market Value per Cost Unit (Net Inventory per Realizable Quantity Unit Value) Cost Market LCM 100 $125 $120 $12,500 $12,000 $12,000 75 100 108 7,500 8,100 7,500 80 90 86 7,200 6,880 6,880 130 74 80 9,620 10,400 9,620 60 105 98 6,300 5,880 5,880 $43,120 $43,260 $41,880