Question

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form 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 the lower 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 the lower 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 the lower 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				$	$	$

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
Part a
Product			Market Value	Cost	Market	Lower of Cost or Market
	Inventory	Cost	per Unit
	Quantity	per Unit	(Net Realizable Value)
Model A	34	$             66	$                                                82	$    2,244	$    2,788	$                                           2,244
Model B	8	$             45	$                                                24	$        360	$        192	$                                               192
Model C	41	$             44	$                                                59	$    1,804	$    2,419	$                                           1,804
Model D	27	$           235	$                                             259	$    6,345	$    6,993	$                                           6,345
Model E	39	$           281	$                                             293	$ 10,959	$ 11,427	$                                         10,959
Total				$ 21,712	$ 23,819	$                                         21,544
Part b
Product		Cost	Market Value	Cost	Market	Lower of Cost or Market
	Inventory	per Unit	per Unit
	Quantity		(Net Realizable Value)
Class 1:
Model A	34	$             66	$                                                82	$    2,244	$    2,788
Model B	8	$             45	$                                                24	$        360	$        192
Model C	41	$             44	$                                                59	$    1,804	$    2,419
Subtotal				$    4,408	$    5,399	$                                           4,408
Class 2:
Model D	27	$           235	$                                             259	$    6,345	$    6,993
Model E	39	$           281	$                                             293	$ 10,959	$ 11,427
Subtotal				$ 17,304	$ 18,420	$                                         17,304
Total				$ 21,712	$ 23,819	$                                         21,712
Part c
Product			Market Value	Cost	Market	Lower of Cost or Market
	Inventory	Cost	per Unit
	Quantity	per Unit	(Net Realizable Value)
Model A	34	$             66	$                                                82	$    2,244	$    2,788
Model B	8	$             45	$                                                24	$        360	$        192
Model C	41	$             44	$                                                59	$    1,804	$    2,419
Model D	27	$           235	$                                             259	$    6,345	$    6,993
Model E	39	$           281	$                                             293	$ 10,959	$ 11,427
Total				$ 21,712	$ 23,819	$                                         21,712