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    littlemoney08's Avatar
    littlemoney08 Posts: 9, Reputation: 1
    New Member
    		  
    #1

    Nov 13, 2009, 10:34 PM
    Lower of cost or market
    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 really want to get a lead on it that's 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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Nov 15, 2009, 12:31 AM

    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.
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