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littlemoney08
Nov 13, 2009, 08:34 PM
A company reported the following data related to its ending inventory:
Product Units Cost Market
849 100 $10 $11
842 75 16 14
847 60 14 13
860 40 16 20
Calculate the lower-of-cost-or-market on the: (a) Inventory as a whole; and (b) Inventory applied separately to each product. (Record answers in template below)

Product Units on Hand Per Unit Cost Market Total Cost Total Market LCM by Product














$____ $____ $_____


I am not trying to get straight answes I just realy want to get a lead on it thats all. i just need a little explanation
i know i am suppose to subtract the market price the cost price bt i dk where to go from there
morgaine300
Nov 14, 2009, 10:31 PM
Not sure why you think you need to subtract anything.

A hint: don't make this difficult cause it's easy as pie. It means quite literally to use the lower of the cost or the market price. For product 849, which is lower, the cost or market? Use that for that product. Etc. That's it.