Inventory on the Balance SheetOn the basis of the following data, determine the value of the inventory at the lower of cost or market. Refer to Exhibit 8 for guidance.ProductInventoryQuantityCost per UnitMarket Value per Unit(Net Realizable Value)Adams53 259 270 Coolidge101 203 169 McKinley12 675 630 Garfield125 90 68 Lincoln150 203 212 Assuming that the cost was determined by the FIFO method, show how Inventory would appear on the balance sheet.The inventory would appear in the Current Assets section of the balance sheet as follows:Inventory at lower of cost (FIFO) or market $fill in the blank 3 ### Inventory on the Balance Sheet#### Task:On the basis of the following data, determine the value of the inventory at the lower of cost or market. Refer to Exhibit 8 for guidance.#### Inventory Data:| Product | Inventory Quantity | Cost per Unit | Market Value per Unit (Net Realizable Value) ||-----------|--------------------|---------------|---------------------------------------------|| Adams | 53 | 259 | 270 || Coolidge | 101 | 203 | 169 || McKinley | 12 | 675 | 630 || Garfield | 125 | 90 | 68 || Lincoln | 150 | 203 | 212 |#### Instructions:Assuming that the cost was determined by the **FIFO method**, show how Inventory would appear on the balance sheet.#### Presentation:The inventory would appear in the **Current Assets** section of the balance sheet as follows:Inventory *at the lower of cost (FIFO) or market*:\$______ In this task, the inventory value must be determined by comparing the "Cost per Unit" and "Market Value per Unit (Net Realizable Value)" for each product and selecting the lower of the two for each product. This value is then multiplied by the "Inventory Quantity" to determine the total inventory value for each product.Provide details and computations accordingly, ensuring that the values are accurate to reflect the inventory at the lower of cost (FIFO) or market.

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Answered: Inventory on the Balance Sheet On the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Inventory on the Balance Sheet

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Refer to Exhibit 8 for guidance.

Product	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)
Adams	53		259	270
Coolidge	101		203	169
McKinley	12		675	630
Garfield	125		90	68
Lincoln	150		203	212

Assuming that the cost was determined by the FIFO method, show how Inventory would appear on the balance sheet.

The inventory would appear in the Current Assets section of the balance sheet as follows:

Inventory at lower of cost (FIFO) or market $fill in the blank 3

### Inventory on the Balance Sheet

#### Task:
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Refer to Exhibit 8 for guidance.

#### Inventory Data:
| Product | Inventory Quantity | Cost per Unit | Market Value per Unit (Net Realizable Value) |
|-----------|--------------------|---------------|---------------------------------------------|
| Adams | 53 | 259 | 270 |
| Coolidge | 101 | 203 | 169 |
| McKinley | 12 | 675 | 630 |
| Garfield | 125 | 90 | 68 |
| Lincoln | 150 | 203 | 212 |

#### Instructions:
Assuming that the cost was determined by the **FIFO method**, show how Inventory would appear on the balance sheet.

#### Presentation:
The inventory would appear in the **Current Assets** section of the balance sheet as follows:

Inventory *at the lower of cost (FIFO) or market*:

\$______

In this task, the inventory value must be determined by comparing the "Cost per Unit" and "Market Value per Unit (Net Realizable Value)" for each product and selecting the lower of the two for each product. This value is then multiplied by the "Inventory Quantity" to determine the total inventory value for each product.

Provide details and computations accordingly, ensuring that the values are accurate to reflect the inventory at the lower of cost (FIFO) or market.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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