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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

Corporate Financial Accounting
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 7DQ: Using the following data, how should the inventory be valued under lower of cost or market? Original...
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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: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
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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