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 the Exhibit 10 example below ItemInventory QuantityCost per UnitMarket Value per Unit (Net Realizable Value)Steeler 1080$140$125Panther 231209011249er 17307574Giants 19758886Falcons 2160140145 See Photo Exhibit 10 Determining Inventory at Lower of Cost or Market (LCM)ABMarket ValueInventory Cost perUnit$10.25per Unit(Net Realizable Value)$ 9.50TotalMarket2Item4 Echo5 Foxtrot6 Sierra7 Tango8 TotalQuantityCostLCM$ 4,100 $ 3,8002,8922,7004,6504,8004,1303,920$15,520 $15,472$ 3,8002,7004,6503,920$15,07040012022.5024.106002808.007.7514.0014.75

Name: On the basis of the following data, determine the value of the invento
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Description: 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 the Exhibit 10 example below ItemInventory QuantityCost per UnitMarket Valu

Inventory refers to the value of stock which is the goods and materials quantity that a business…

Answered: On the basis of the following data,…

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 6.15EX: Lower-of-cost-or-market inventory On the basis of the following data, determine the value of the...

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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 the Exhibit 10 example below

Item	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)
Steeler 10	80	$140	$125
Panther 23	120	90	112
49er 17	30	75	74
Giants 19	75	88	86
Falcons 21	60	140	145

See Photo

Exhibit 10 Determining Inventory at Lower of Cost or Market (LCM)
A
B
Market Value
Inventory Cost per
Unit
$10.25
per Unit
(Net Realizable Value)
$ 9.50
Total
Market
2
Item
4 Echo
5 Foxtrot
6 Sierra
7 Tango
8 Total
Quantity
Cost
LCM
$ 4,100 $ 3,800
2,892
2,700
4,650
4,800
4,130
3,920
$15,520 $15,472
$ 3,800
2,700
4,650
3,920
$15,070
400
120
22.50
24.10
600
280
8.00
7.75
14.00
14.75

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