Question

Holtz Inc. has the following per-unit data for items in inventory on December 31, 2014: Item 1 Cost Selling Cost Normal Profit Replacement Cost $10.00 Estimated Sales Price $13.00 $10.50 $1.25 $2.00 Blarney Stones Shamrocks Four Leaf Clovers Funny Hats 7.00 3.001 6.50 2.25 9.75 4.65 0.75 0.75 1.10 0.60 6.50 7.00 7.25 1.25 1.50 Applying the lower-of-cost-or-market (LCM) to the above information, provide the following information: Market Lower-of-Cost-or-Market Item Blarney Stones Shamrocks Four Leaf Clovers Funny Hats

Answer 1

Product	Cost	Replacement cost	NRV	NRV - NP	Market	Lower of cost or market
			(Estimated Sales price - Selling cost)
Balmey Stocks	$10.50	$10.00	$11.75	$9.75	$10.00	$10.00
Shamrocks	$7.00	$6.50	$9.00	$7.90	$7.90	$7.00
Four Leaf Clovers	$3.00	$2.25	$3.90	$3.30	$3.30	$3.00
Funny Hats	$6.50	$7.00	$6.00	$4.50	$7.00	$6.50
Market =Higher of (Replacement cost, NRV-NP)
Lower of cost or market =Lower of(Cost, Market)