On the basis of the following data, determine the value of theinventory at the lower of cost or market. Assemble the data in theform illustrated in Exhibit 10.
| Product | Inventory
Quantity | Cost Per
Unit |
Market Value per Unit
(Net Realizable Value)
|
| Class 1: | | | |
| Model A | 34 | $66 | $82 |
| Model B | 8 | 45 | 24 |
| Model C | 41 | 44 | 59 |
| Class 2: | | | |
| Model D | 27 | 235 | 259 |
| Model E | 39 | 281 | 293 |
a. Determine the value of the inventory at thelower of cost or market applied to each item in the inventory.
|
|
| Inventory at the Lower of Cost or Market |
Product |
Inventory
Quantity |
Cost
per Unit | Market Value
per Unit
(Net Realizable Value) | Cost | Market | Lower of Cost or Market |
| Model A | | $ | $ | $ | $ | $ |
| Model B | | | | | | |
| Model C | | | | | | |
| Model D | | | | | | |
| Model E | | | | | | |
| Total | | | | $ | $ | $ |
b. Determine the value of the inventory at thelower of cost or market applied to each class of inventory.
|
|
Inventory at the
Lower of Cost
or Market |
Product |
Inventory
Quantity | Cost
per Unit | Market Value
per Unit
(Net Realizable Value) | Cost | Market | Lower of Cost or Market |
| Class 1: | | | | | | |
| Model A | | $ | $ | $ | $ | |
| Model B | | | | | | |
| Model C | | | | | | |
| Subtotal | | | | $ | $ | $ |
| Class 2: | | | | | | |
| Model D | | | | $ | $ | |
| Model E | | | | | | |
| Subtotal | | | | $ | $ | |
| Total | | | | $ | $ | $ |
c. Determine the value of the inventory at thelower of cost or market applied to total inventory.
|
|
| Inventory at the Lower of Cost or Market |
Product |
Inventory
Quantity |
Cost
per Unit | Market Value
per Unit
(Net Realizable Value) | Cost | Market | Lower of Cost or Market |
| Model A | | $ | $ | $ | $ | |
| Model B | | | | | | |
| Model C | | | | | | |
| Model D | | | | | | |
| Model E | | | | | | |
| Total | | | | $ | $ | $ |
