On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9. InventoryItem InventoryQuantity Cost perUnit Market Value per Unit(Net Realizable Value) Birch  100 $125 $120 Cypress 75   100  108   Mountain Ash  80 90   86 Spruce  130   74   80 Willow  60  105  98     Inventory at the Lower of Cost or Market   Commodity Total Cost Total Market Total Lower of C or M Birch $ $ $ Cypress       Mountain Ash       Spruce       Willow       Total $ $ $

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A:

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.