On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item, as shown in Exhibit 9.

Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Raven 10 1,200 $115 $112 Dove 23 6,500      17     22

Answer:

Market Value per Cost Unit (Net Inventory per Realizable Commodity Quantity Unit Value) Cost Market LCM Raven 10 1,200 $115 $112 $138,000 $134,400 $134,400 Dove 23 6,500 17 22 110,500 143,000 110,500 Total $248,500 $277,400 $244,900