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. Market Value per Unit (Net Realizable Value) Inventory Item Inventory Quantity Cost per Unit Birch $125 $120 100 Cypress 75 100 108 Mountain Ash 90 86 Spruce 130 74 80 Willow 105 98 EXHIBIT 9 Market Value Determining Inventory at Lower of Cost or Market Inventory Cost per Quantity per Unit (Net Realizable Value) $ 9.50 Total 2 Market $ 3,800 2,892 4,650 4,130 $15,472 3 Item Unit Cost LCM 4 Echo 5 Foxtrot 6 Sierra 7 Tango 8 Total 9. $ 4,100 $ 3,800 $10.25 400 120 22.50 24.10 2,700 4,800 3,920 $15,520 2,700 4,650 3,920 $15,070 (LCM) 600 8.00 7.75 280 14.00 14.75
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. Market Value per Unit (Net Realizable Value) Inventory Item Inventory Quantity Cost per Unit Birch $125 $120 100 Cypress 75 100 108 Mountain Ash 90 86 Spruce 130 74 80 Willow 105 98 EXHIBIT 9 Market Value Determining Inventory at Lower of Cost or Market Inventory Cost per Quantity per Unit (Net Realizable Value) $ 9.50 Total 2 Market $ 3,800 2,892 4,650 4,130 $15,472 3 Item Unit Cost LCM 4 Echo 5 Foxtrot 6 Sierra 7 Tango 8 Total 9. $ 4,100 $ 3,800 $10.25 400 120 22.50 24.10 2,700 4,800 3,920 $15,520 2,700 4,650 3,920 $15,070 (LCM) 600 8.00 7.75 280 14.00 14.75
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
Market Value per Unit
(Net Realizable Value)
Inventory
Item
Inventory
Quantity
Cost per
Unit
Birch
$125
$120
100
Cypress
75
100
108
Mountain Ash
90
86
Spruce
130
74
80
Willow
105
98
Transcribed Image Text:EXHIBIT 9
Market Value
Determining
Inventory at Lower
of Cost or Market
Inventory Cost per
Quantity
per Unit
(Net Realizable Value)
$ 9.50
Total
2
Market
$ 3,800
2,892
4,650
4,130
$15,472
3
Item
Unit
Cost
LCM
4 Echo
5 Foxtrot
6 Sierra
7 Tango
8 Total
9.
$ 4,100
$ 3,800
$10.25
400
120
22.50
24.10
2,700
4,800
3,920
$15,520
2,700
4,650
3,920
$15,070
(LCM)
600
8.00
7.75
280
14.00
14.75
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