Homework SourseLowerofCostorMarket Inventory On the basis of the following
Lower-of-Cost-or-Market Inventory
On the basis of the following data:
Inventory
Quantity
Unit
Cost Price
Unit
Market Price
Determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 10.
| Commodity | Inventory | Unit | Unit | |
| AL65 | 23 | $52 | $54 | |
| CA22 | 32 | 134 | 109 | |
| LA98 | 14 | 232 | 235 | |
| SC16 | 47 | 197 | 214 | |
| UT28 | 23 | 182 | 178 |
Solution
Inventory at the Lower of Cost or Market
Commodity
Total Cost
Total Market
Total Lower of C or M
AL65
(23 units * $52)
=$1196
(23 units * $54)
=$1242
$1196
CA22
(32 units * $134)
=$4288
(32 units * $109)
=$3488
$3488
LA98
(14 units * $232)
=$3248
(14 units * $235)
=$3290
$3248
SC16
(47 units * $197)
=$9259
(47 units * $214)
=$10058
$9259
UT28
(23 units * $182)
=$4186
(23 units * $178)
=4094
$4094
Total
$22177
$22172
$21285
| Inventory at the Lower of Cost or Market | |||
| Commodity | Total Cost | Total Market | Total Lower of C or M |
| AL65 | (23 units * $52) =$1196 | (23 units * $54) =$1242 | $1196 |
| CA22 | (32 units * $134) =$4288 | (32 units * $109) =$3488 | $3488 |
| LA98 | (14 units * $232) =$3248 | (14 units * $235) =$3290 | $3248 |
| SC16 | (47 units * $197) =$9259 | (47 units * $214) =$10058 | $9259 |
| UT28 | (23 units * $182) =$4186 | (23 units * $178) =4094 | $4094 |
| Total | $22177 | $22172 | $21285 |
