Question

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 9.

Inventory Item	Inventory Quantity	Cost per Unit	Market Value per Unit (Net Realizable Value)
Birch	44	$53	$31
Cypress	33	51	55
Mountain Ash	33	152	149
Spruce	33	277	275
Willow	41	295	291

Inventory at the Lower of Cost or Market
Inventory Item	Total Cost	Total Market	Total Lower of C or M
Birch	$	$	$
Cypress
Mountain Ash
Spruce
Willow
Total	$	$	$

Answer 1

Inventory at the Lower of Cost or Market
Inventory Item	Total Cost	Total Market	Total Lower of C or M
Birch	2332	1364	1364
Cypress	1683	1815	1683
Mountain Ash	5016	4917	4917
Spruce	9141	9075	9075
Willow	12095	11931	11931
Total	30267	29102	28970
Formulas:
Inventory Item	Total Cost	Total Market
Birch	=44*53	=44*31
Cypress	=33*51	=33*55
Mountain Ash	=33*152	=33*149
Spruce	=33*277	=33*275
Willow	=41*295	=41*291