Question

Inventory on the Balance Sheet On the basis of the following data, determine the value of the inventory at the lower of cost or market. Refer to Exhibit 9 for guidance. Product Inventory Quantity Unit Cost per Unit Market Value per Unit (Net Realizable Value) Adams 100 $140 $125 Coolidge 375 90 112 McKinley 220 60 59 Garfield 900 120 115 Lincoln 626 140 145 Assuming that the cost was determined by the FIFO method, show how Inventory would appear on the balance sheet. Inventory

Answer 1

Answer:

Total Inventory           250,590‬

Explanation:

We have to pick the lowest price between the istoric cost (FIFO method) and the market value of the goods)

                 units x lowest

Adams     100 x 125 =   12,500

Coolidge 375 x 90  =   33,750

McKinley 220 x 60  =   13,200

Garfield 900 x 115  =  103,500

Lincoln 626 x 140  =    87,640

Total Inventory           250,590‬