On the basis of the data shown below:ItemInventoryQuantityCost perUnitMarket Value per Unit(Net Realizable Value)Raven 101,200$115$112Dove 236,500 17 22Determine the value of the inventory at the lower of cost or market. (Note: Apply lower of cost or market to each inventory item, as shown in Exhibit 9.)Exhibit 9 **Exhibit 9: Determining Inventory at Lower of Cost or Market (LCM)**This table assists in calculating inventory values using the Lower of Cost or Market (LCM) method. It includes various items with their corresponding values.**Table Breakdown:**| | A | B | C | D | E | F | G ||---|-------|----------|---------------|-------------------------|--------|--------|--------|| | | Inventory| Cost per Unit | Market Value per Unit | Total | | || | | | | (Net Realizable Value) | | | || 3 | Item | Quantity | | | Cost | Market | LCM || 4 | Echo | 400 | $10.25 | $9.50 | $4,100 | $3,800 | $3,800 || 5 | Foxtrot| 120 | $22.50 | $24.10 | $2,700 | $2,892 | $2,700 || 6 | Sierra| 600 | $8.00 | $7.75 | $4,800 | $4,650 | $4,650 || 7 | Tango | 280 | $14.00 | $14.75 | $3,920 | $4,130 | $3,920 || 8 | Total | | | | $15,520| $15,472| $15,070|**Explanation**:- **Inventory Quantity (Column B)**: Lists the number of units available for each item. - **Cost per Unit (Column C)**: Represents the per-unit cost of acquiring or producing the items. - **Market Value per Unit (Column D)**: Shows the current per-unit market value or net realizable value (NRV). - **Cost and Market Totals (Columns E & F)**: Displays the total cost and total market value for each item by multiplying the quantity by their respective per-unit values.- **LCM Total (Column G)**: Uses the Lower of Cost or Market methodology to determine the value at which inventory should be recorded. This is the lower value between the cost and market for each item.- **Totals

Name: On the basis of the data shown below:ItemInventoryQuantityCost perUnit
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: On the basis of the data shown below:ItemInventoryQuantityCost perUnitMarket Value per Unit(Net Realizable Value)Raven 101,200$115$112Dove 236,500 17 22Determine the value of the inventory at the lower of cost or market. (Note: Apply lower of co

Lower of cost or market is a method of valuing inventory either baed on the historical cost or the market value, whichever is lower. The value of inventory can sometimes fall when the price goes below net realisable value and this can impact the profitability of the organisation. This is a concept based on conservatism where the losses are recorded when expected and profits are not recorded until realised. Item Inventory quantity Cost per unit($) Market value per unit ($) Total cost($) Total market value($) LCM ($) Raven 1200 115 112 138,000 134,400 134,400(market) Dove 6500 17 22 110,500 143,000 110,500(cost)