A Company Had the Following Ending Inventory Costs Required:
Calculate the Lower of Cost or Market (LCM)value for |

question 48

Essay

A company had the following ending inventory costs:
$$\begin{array} { | c | c | r | r | } \hline \text { Product } & \text { Units of Hand } & \text { Unit Cost } & \text { Market Value } \\\hline \text { A } & 10 & \$ 5 & \$6 \\\hline \text { B } & 50 & 8 &7 \\\hline \text { C } & 35 & 10 & 11 \\\hline\end{array}$$
Required:
Calculate the lower of cost or market (LCM)value for each individual item.

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Definitions:

Five Senses

The five main faculties of perception in humans, comprising sight, hearing, smell, taste, and touch.

Tangible Attributes

The physical features of a product that can be sensed by touch, sight, taste, smell, or hearing, distinguishing it from intangible qualities.

Durable Goods

Products that are intended to last for a significant amount of time, such as appliances, cars, and furniture, as opposed to consumer goods which are consumed quickly.