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

Product Inventory Cost Per Market Value per Unit

Quantity Unit (Net Realizable Value)

Class 1:

Model A 8 $171 $156

Model B 50 206 183

Model C 46 249 236

Class 2:

Model D 35 158 137

Model E 34 278 296

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 Total Cost Total Market Lower of Total Cost or Total Market

A

B

C

D

E

Total

b. Determine the value of the inventory at the lower of cost or market applied to each class of inventory.

Question

Nylah

Business

27 May, 02:34

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

Product Inventory Cost Per Market Value per Unit

Quantity Unit (Net Realizable Value)

Class 1:

Model A 8 $171 $156

Model B 50 206 183

Model C 46 249 236

Class 2:

Model D 35 158 137

Model E 34 278 296

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 Total Cost Total Market Lower of Total Cost or Total Market

A

B

C

D

E

Total

b. Determine the value of the inventory at the lower of cost or market applied to each class of inventory.

+3

Answers (1)

Know the Answer?

Taniyah Riley · Answer 1

The computation is shown below:

Explanation:

The computation is shown below:

Product Total Cost Total Market Lower of Total Cost or Total Market

A $1,368 $1,248 $1,248

($171 * 8 units) ($156 * 8 units)

B $10,300 $9,150 $9,150

($206 * 50 units) ($183 * 50 units)

C $11,454 $10,856 $10,856

($249 * 46 units) ($236 * 46 units)

D $5,530 $4,795 4,795

($158 * 35 units) ($137 * 35 units)

E $9,452 $10,064 $9,452

($278 * 34 units) ($296 * 34 units)

Total $35,501