On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item, as shown in Exhibit 9.
Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) JFW1 6,330 $10 $11 SAW9 1,140 36 34
Answer:
Market Value per Cost Unit (Net Inventory per Realizable Commodity Quantity Unit Value) Cost Market LCM JFW1 6,330 $10 $11 $ 63,300 $ 69,630 $ 63,300 SAW9 1,140 36 34 41,040 38,760 38,760 Total $104,340 $108,390 $102,060