LowerofCostorMarket Inventory On the basis of the following

Lower-of-Cost-or-Market Inventory

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.

Inventory
Item

Inventory
Quantity

Cost per
Unit

Market Value per Unit
(Net Realizable Value)

Inventory Item	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)
Birch	44	$71	$47
Cypress	38	207	232
Mountain Ash	32	44	36
Spruce	25	223	198
Willow	24	254	238

Solution

Inventory at the lower of cost or market Commodity Total Cost Total market Total lower of C and M Birch 3124 $2,068 $2,068 Cypress 7866 8816 7866 Mountain Ash 1408 1152 1152 Spruce 5575 4950 4950 Willow 6096 5712 5712 Total 24069 $22,698 $21,748 Calculation of Total Cost Commodity Inventory Quantity (A) Cost Per Unit (B) Total Cost (A*B) Birch 44 $71 $3,124 Cypress 38 207 7866 Mountain Ash 32 44 1408 Spruce 25 223 5575 Willow 24 254 6096 Calculation of Total Market Cost Commodity Inventory Quantity (A) Market value Per unit (B) Total market (A*B) Birch 44 $47 $2,068 Cypress 38 232 8816 Mountain Ash 32 36 1152 Spruce 25 198 4950 Willow 24 238 5712