ACC 215 Ex 6.5 p. 249

ACC 215 Ex 6.5 p. 249 - Shoes . . . . . . . . . . 36 95 91...

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Exercise 6-5  Lower of cost or market  Tanzy Company's ending inventory includes the following items. Compute the lower of cost or market for ending  inventory (a) as a whole and (b) applied separately to each product.                                           &nbs p;     __Per Unit__  Product                  Units     Cost      Market  Helmets . . . . . . . . 22        $50        $54  Bats . . . . . . . . . . . 15           78           72 
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Unformatted text preview: Shoes . . . . . . . . . . 36 95 91 Uniforms . . . . . . . 40 36 36 Per Unit Total Total LCM applied to: Inventory Items Unit Cost Market Cost Market Products Whole Helmets 22 $50 $54 $1,100 $1,188 $1,100 Bats. ............. 15 78 72 1,170 1,080 1,080 Shoes. .......... 36 95 91 3,420 3,276 3,276 Uniforms. ...... 40 36 36 1,440 1,440 1,440 $7,130 $6,984 $6,896 $6,984 a. Lower of cost or market of inventory as a whole = $6,984 b. Lower of cost or market of inventory by product = $6,896...
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