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< 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. Product Adams Coolidge McKinley Garfield Lincoln Total Feedback Inventory Quantity 45 13 47 23 36 Cost per Unit $206 239 211 289 262 Market Value per Unit (Net Realizable Value) $191 232 200 296 241 $ Cost Total Market $26,980 X $ LCM 24,478 X Check My Work Multiply the number of units by the unit cost price and enter the total cost amount in the Cost column. Multiply the number of units by the unit market price and enter the total market amount in the Market column. Then, enter the lower of the two amounts from the Cost and Market columns in the LCM column. Finally, total the columns. The total of the LCM column shows the total lower-of-cost-or-market applied on an item-by-item basis. ?

< 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. Product Adams Coolidge McKinley Garfield Lincoln Total Feedback Inventory Quantity 45 13 47 23 36 Cost per Unit $206 239 211 289 262 Market Value per Unit (Net Realizable Value) $191 232 200 296 241 $ Cost Total Market $26,980 X $ LCM 24,478 X Check My Work Multiply the number of units by the unit cost price and enter the total cost amount in the Cost column. Multiply the number of units by the unit market price and enter the total market amount in the Market column. Then, enter the lower of the two amounts from the Cost and Market columns in the LCM column. Finally, total the columns. The total of the LCM column shows the total lower-of-cost-or-market applied on an item-by-item basis. ?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**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. | Product | Inventory Quantity | Cost per Unit | Market Value per Unit (Net Realizable Value) | |---------|--------------------|---------------|---------------------------------------------| | Adams | 45 | $206 | $191 | | Coolidge| 13 | $239 | $232 | | McKinley| 47 | $211 | $200 | | Garfield| 23 | $289 | $296 | | Lincoln | 36 | $262 | $241 | **Table Totals:** - **Cost:** $26,980 - **Market:** Amount not filled in table - **LCM (Lower of Cost or Market):** $24,478 **Explanation and Instructions:** To calculate the lower-of-cost-or-market inventory value, follow these steps: 1. **Cost Calculation:** Multiply the inventory quantity by the cost per unit for each product and enter the result in the Cost column. 2. **Market Calculation:** Multiply the inventory quantity by the per-unit market value and enter the result in the Market column. 3. **LCM Calculation:** For each product, take the lower value from either the Cost or Market column and enter it in the LCM column. 4. **Total:** Sum each column to get the total values for Cost, Market, and LCM. **Feedback Section:** - Multiply the number of units by the unit cost price and enter the total cost amount in the Cost column. - Multiply the number of units by the unit market price and enter the total market amount in the Market column. - Enter the lower of the two amounts from the Cost and Market columns in the LCM column. Finally, total the columns. - The total of the LCM column shows the total lower-of-cost-or-market applied on an item-by-item basis.
Transcribed Image Text:**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. | Product | Inventory Quantity | Cost per Unit | Market Value per Unit (Net Realizable Value) | |---------|--------------------|---------------|---------------------------------------------| | Adams | 45 | $206 | $191 | | Coolidge| 13 | $239 | $232 | | McKinley| 47 | $211 | $200 | | Garfield| 23 | $289 | $296 | | Lincoln | 36 | $262 | $241 | **Table Totals:** - **Cost:** $26,980 - **Market:** Amount not filled in table - **LCM (Lower of Cost or Market):** $24,478 **Explanation and Instructions:** To calculate the lower-of-cost-or-market inventory value, follow these steps: 1. **Cost Calculation:** Multiply the inventory quantity by the cost per unit for each product and enter the result in the Cost column. 2. **Market Calculation:** Multiply the inventory quantity by the per-unit market value and enter the result in the Market column. 3. **LCM Calculation:** For each product, take the lower value from either the Cost or Market column and enter it in the LCM column. 4. **Total:** Sum each column to get the total values for Cost, Market, and LCM. **Feedback Section:** - Multiply the number of units by the unit cost price and enter the total cost amount in the Cost column. - Multiply the number of units by the unit market price and enter the total market amount in the Market column. - Enter the lower of the two amounts from the Cost and Market columns in the LCM column. Finally, total the columns. - The total of the LCM column shows the total lower-of-cost-or-market applied on an item-by-item basis.
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