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  100 $125 $120 Cypress 75   100  108   Mountain Ash  80 90   86 Spruce  130   74   80 Willow  60  105  98     Inventory at the Lower of Cost or Market   Inventory Item Total Cost Total Market Total Lower of C or M Birch $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Cypress fill in the blank 4 fill in the blank 5 fill in the blank 6 Mountain Ash fill in the blank 7 fill in the blank 8 fill in the blank 9 Spruce fill in the blank 10 fill in the blank 11 fill in the blank 12 Willow fill in the blank 13 fill in the blank 14 fill in the blank 15 Total $fill in the blank 16 $fill in the blank 17 $fill in the blank 18

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A:

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A:

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A: ENDING INVENTORY WILL BE VALUED AT COST OR NET REALIZABLE VALUE WHICHEVER IS LOWER .

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A: Working Note:

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A:

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A: Given:

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Q: Inventory at the Lower of Cost or Market

A:

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A: LCNRV means inventory is valued at lower of cost of net realizable value

Q: The following data refer to Jacket Company’s ending inventory:   Item code Quantity Unit Cost…

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.