Homework SourseBrief Exercise 67 Flint Corporation accumulates the followin
Brief Exercise 6-7 Flint Corporation accumulates the following cost and market data at December 31. Inventory Categories Cost Data Market Data Cameras $10,484 $11,674 Camcorders 8,798 9,348 DVDs 11,062 10,052 Compute the lower-of-cost-or-market valuation for company’s inventory. The lower-of-cost-or-market value $ _________
Solution
Answer
Cost value, or
market Value,
Whichever is LOWER.
Cost
Market Value
Lower of Cost or Market value
Cameras
$ 10,484.00
$ 11,674.00
$ 10,484.00
Cam recorders
$ 8,798.00
$ 9,348.00
$ 8,798.00
DVDs
$ 11,062.00
$ 10,052.00
$ 10,052.00
Total
$ 30,344.00
$ 31,074.00
$ 29,334.00
Based on above working, if company values Inventories as per Lower of Cost or NRV rule on INDIVIDUAL BASIS, The lower-of-cost-or-market-value will be $ 29,334.
| Cost | Market Value | Lower of Cost or Market value | |
| Cameras | $ 10,484.00 | $ 11,674.00 | $ 10,484.00 |
| Cam recorders | $ 8,798.00 | $ 9,348.00 | $ 8,798.00 |
| DVDs | $ 11,062.00 | $ 10,052.00 | $ 10,052.00 |
| Total | $ 30,344.00 | $ 31,074.00 | $ 29,334.00 |
