FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
Class 1:
Model A
Model B
Model C
Class 2:
Model D
Model E
Product
Model A
Model B
Model C
Model D
Model E
Total
Product
Class 1:
Model A
Model B
Model C
Class 2:
Total
Subtotal
Model D
Model E
Inventory
Quantity
Total
26
a. Determine the value of the inventory at the lower of cost or market applied to each item in the Inventory.
Subtotal
Product
Model A
Model B
Model C
Model D
Model E
26
10
49
9
b. Determine the value of the inventory at the lower of cost or market applied to each class of inventory.
Cost Per
Unit
Inventory
Quantity
Inventory at the Lower of Cost or Market
Market Value
per Unit
Inventory Cost
Quantity per Unit (Net Realizable Value)
Cost
per Unit
$149
284
147
54
121
00000
Market Value per Unit
(Net Realizable Value)
88
38
00000
$137
274
143
46
Inventory at the
Lower of Cost
or Market
Market Value
per Unit
(Net Realizable Value)
135
Cost Market Lower of Cost or Market
c. Determine the value of the inventory at the lower of cost or market applied to total inventory.
Cost Market Lower of Cost or Market
Inventory at the Lower of Cost or Market
Market Value
Inventory Cost
per Unit
Quantity per Unit (Net Realizable Value)
Cost Market Lower of Cost or Market
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Transcribed Image Text: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 Class 1: Model A Model B Model C Class 2: Model D Model E Product Model A Model B Model C Model D Model E Total Product Class 1: Model A Model B Model C Class 2: Total Subtotal Model D Model E Inventory Quantity Total 26 a. Determine the value of the inventory at the lower of cost or market applied to each item in the Inventory. Subtotal Product Model A Model B Model C Model D Model E 26 10 49 9 b. Determine the value of the inventory at the lower of cost or market applied to each class of inventory. Cost Per Unit Inventory Quantity Inventory at the Lower of Cost or Market Market Value per Unit Inventory Cost Quantity per Unit (Net Realizable Value) Cost per Unit $149 284 147 54 121 00000 Market Value per Unit (Net Realizable Value) 88 38 00000 $137 274 143 46 Inventory at the Lower of Cost or Market Market Value per Unit (Net Realizable Value) 135 Cost Market Lower of Cost or Market c. Determine the value of the inventory at the lower of cost or market applied to total inventory. Cost Market Lower of Cost or Market Inventory at the Lower of Cost or Market Market Value Inventory Cost per Unit Quantity per Unit (Net Realizable Value) Cost Market Lower of Cost or Market
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