Question

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.

							Total
Product	Inventory Quantity		Cost per Unit		Market Value per Unit (Net Realizable Value)		Cost	Market	LCM
Adams	100		$140		$125		$_____	$_____	$______
Coolidge	375		90		112		______	______	______
McKinley	220		60		59		______	______	______
Garfield	900		120		115		______	______	______
Lincoln	626		140		145		______	______	______
Total							$_____	$_____	$______

Answer 1

							Total
Product	Inventory Quantity		Cost per Unit		Market Value per		Cost	Market	LCM
					Unit (Net Realizable Value)
Adams	100		$ 140.00		$ 125.00		$ 14,000.00	$ 12,500.00	$ 12,500.00
Coolidge	375		$   90.00		$ 112.00		$ 33,750.00	$ 42,000.00	$ 33,750.00
McKinley	220		$   60.00		$   59.00		$ 13,200.00	$ 12,980.00	$ 12,980.00
Garfield	900		$ 120.00		$ 115.00		$108,000.00	$103,500.00	$103,500.00
Lincoln	626		$ 140.00		$ 145.00		$ 87,640.00	$ 90,770.00	$ 87,640.00
Total							$256,590.00	$261,750.00	$250,370.00