Question

Lower-of-Cost-or-Market Inventory

Data on the physical inventory of Ashwood Products Company as of December 31 follow:

Inventory Item	Inventory Quantity			Market Value per Unit (Net Realizable Value)
B12	38			$ 57
E41	18			180
G19	33			126
L88	18			550
N94	400			7
P24	90			18
R66	8			250
T33	140			20
Z16	15			752

Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows:

	Last Purchases Invoice							Next-to-the-Last Purchases Invoice
Inventory Item	Quantity Purchased			Unit Cost				Quantity Purchased			Unit Cost
B12	30			$ 60				30			$ 59
E41	35			178				20			180
G19	20			128				25			129
L88	10			563				10			560
N94	500			8				500			7
P24	80			22				50			21
R66	5			248				4			260
T33	100			21				100			19
Z16	10			750				9			745

Required:

Determine the inventory at cost as well as at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows:

1. Insert the quantity and unit cost of the last purchase.
2. Insert the quantity and unit cost of the next-to-the-last purchase.
3. Total the cost and market columns and insert the lower of the two totals in the Lower of C or M column.

The first item on the inventory sheet has been completed as an example.

Inventory Sheet December 31
Inventory Item	Inventory Quantity		Cost per Unit	Market Value per Unit (Net Realizable Value)
					Total Cost	Total Market	Total LCM
B12	38	30	$60	$57	$1,800	$1,710
		8	59	57	472	456
					2,272	2,166	$2,166
E41	18		fill in the blank 1	fill in the blank 2	fill in the blank 3	fill in the blank 4	fill in the blank 5
G19	33	fill in the blank 6	fill in the blank 7	fill in the blank 8	fill in the blank 9	fill in the blank 10
		fill in the blank 11	fill in the blank 12	fill in the blank 13	fill in the blank 14	fill in the blank 15
					fill in the blank 16	fill in the blank 17	fill in the blank 18
L88	18	fill in the blank 19	fill in the blank 20	fill in the blank 21	fill in the blank 22	fill in the blank 23
		fill in the blank 24	fill in the blank 25	fill in the blank 26	fill in the blank 27	fill in the blank 28
					fill in the blank 29	fill in the blank 30	fill in the blank 31
N94	400		fill in the blank 32	fill in the blank 33	fill in the blank 34	fill in the blank 35	fill in the blank 36
P24	90	fill in the blank 37	fill in the blank 38	fill in the blank 39	fill in the blank 40	fill in the blank 41
		fill in the blank 42	fill in the blank 43	fill in the blank 44	fill in the blank 45	fill in the blank 46
					fill in the blank 47	fill in the blank 48	fill in the blank 49
R66	8	fill in the blank 50	fill in the blank 51	fill in the blank 52	fill in the blank 53	fill in the blank 54
		fill in the blank 55	fill in the blank 56	fill in the blank 57	fill in the blank 58	fill in the blank 59
					fill in the blank 60	fill in the blank 61	fill in the blank 62
T33	140	fill in the blank 63	fill in the blank 64	fill in the blank 65	fill in the blank 66	fill in the blank 67
		fill in the blank 68	fill in the blank 69	fill in the blank 70	fill in the blank 71	fill in the blank 72
					fill in the blank 73	fill in the blank 74	fill in the blank 75
Z16	15	fill in the blank 76	fill in the blank 77	fill in the blank 78	fill in the blank 79	fill in the blank 80
		fill in the blank 81	fill in the blank 82	fill in the blank 83	fill in the blank 84	fill in the blank 85
					fill in the blank 86	fill in the blank 87	fill in the blank 88
Total					$fill in the blank 89	$fill in the blank 90	$fill in the blank 91

Answer 1

Inventory Sheet 01-12-1931
Inventory Item	Inventory Quantity	Cost per Unit	Market Value per Unit	Total Cost	Total Market	Total LCM
		Unit	Cost
B12	38	30	60	57	1800	1710
		8	59	57	472	456
				Total	2272	2166	2166
E41	18	18	178	180	3204	3240
				Total	3204	3240	3204
G19	33	20	128	126	2560	2520
		13	129	126	1677	1638
				Total	4237	4158	4158
L88	18	10	563	550	5630	5500
		8	560	550	4480	4400
				Total	10110	9900	9900
N94	400	400	8	7	3200	2800
				Total	3200	2800	2800
P24	90	80	22	18	1760	1440
		10	21	18	210	180
				Total	1970	1620	1620
R66	8	5	248	250	1240	1250
		3	260	250	780	750
				Total	2020	2000	2000
T33	140	100	21	20	2100	2000
		40	19	20	760	800
				Total	2860	2800	2800
Z16	15	10	750	752	7500	7520
		5	745	752	3725	3760
				Total	11225	11280	11225