A company had the following ending inventory costs:
$\begin{array}{|l|l|c|c|}
\hline \text { Product } & \text { Units Available } & \text { Cost } & \text { Market } \
\hline \text { A } & 10 & \$ 5 & \$ 6 \
\hline \text { B } & 50 & 8 & 7 \
\hline \text { C } & 35 & 10 & 11 \
\hline
\end{array}$ Instructions:
(a) Calculate the lower of cost or market (LCM) value for the inventory as a whole.
(b) Calculate the lower of cost or market (LCM) value for each individual item.

Question

A company had the following ending inventory costs:
 $\begin{array}{|l|l|c|c|}
\hline \text { Product } & \text { Units Available } & \text { Cost } & \text { Market } \
\hline \text { A } & 10 & \$ 5 & \$ 6 \
\hline \text { B } & 50 & 8 & 7 \
\hline \text { C } & 35 & 10 & 11 \
\hline
\end{array}$ Instructions:
(a) Calculate the lower of cost or market (LCM) value for the inventory as a whole.
(b) Calculate the lower of cost or market (LCM) value for each individual item.

Quizplus · Accepted Answer

The Answer of A company had the following ending inventory costs:
 $\begin{array}{|l|l|c|c|}
\hline \text { Product } & \text { Units Available } & \text { Cost } & \text { Market } \
\hline \text { A } & 10 & \$ 5 & \$ 6 \
\hline \text { B } & 50 & 8 & 7 \
\hline \text { C } & 35 & 10 & 11 \
\hline
\end{array}$ Instructions:
(a) Calculate the lower of cost or market (LCM) value for the inventory as a whole.
(b) Calculate the lower of cost or market (LCM) value for each individual item.

A Company Had the Following Ending Inventory Costs Instructions: (A) Calculate the Lower of Cost or Market (LCM)

A Company Had the Following Ending Inventory Costs Instructions:
(A) Calculate the Lower of Cost or Market (LCM)