Teal Mountain Inc. accumulates the following cost and market data at December 31. Inventory Categories Cost...

Teal Mountain Inc. accumulates the following cost and market data at December 31. Inventory Categories Cost Data Market Data Cameras $10,252 $11,362 Camcorders 8,074 8,774 DVDs 10,987 9,547 Compute the lower-of-cost-or-market valuation for company’s inventory. The lower-of-cost-or-market value $

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Ans.	Item	Cost Data	Market Data	Lower of Cost or Market Value
	Cameras	$10,252	$11,362	$10,252
	Camcorders	$8,074	$8,774	$8,774
	DVDs	$10,987	$9,547	$9,547
	Total			$28,573

	*Lower of cost or market value (LCM) = Lower value between total cost and total market

	*Cost data is lower in the inventory categories of Cameras and Camcorders & market data is lower in DVDs.
	So the LCM (lower of cost or market value) will be selected as cost data for Cameras and camcorders & the
	market data for DVDs.

ekkarill92 answered 1 year ago

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