Alfalfa Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCM) basis in valuing inventories:

Question

Quizplus · Accepted Answer

The lower-of-cost-or-net realizable value (LCM) rule requires that inventory be reported at the lower of its historical cost or its net realizable value. The correct choice is $343,000, which is the lower value between the cost and the net realizable value for the inventory.

Alfalfa Company Developed the Following Information About Its Inventories in Applying