EX 7-11 Lower-of-cost-or-market inventory

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 8.

Commodity Inventory Quantity Unit Cost Price Unit Market Price
AL65                          40                      $28                     $30
CA22                          50                       70                       65
LA98                        110                         6                         5
SC16                          30                        40                       30
UT28                          75                        60                       62

Answer:
A B C D E F G 1   Unit Unit Total 2  Inventory Cost Market   Lower 3 Commodity Quantity Price Price Cost Market of C or M 4 AL65  40  $28  $30  $  1,120  $  1,200  $   1,120 5 CA22  50  70  65   3,500  3,250   3,250 6 LA98  110  6  5   660  550   550 7 SC16  30  40  30   1,200  900   900 8 UT28  75  60  62      4,500     4,650      4,500 9 Total      $10,980 $10,550  $10,320 

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