# How do i calculate problem below using the LCM

Anonymous

Question description

Item   QUANTITY ON HAND        UNIT COST         REPLACEMENT COST(MARKET VALUE

R                    25                                   \$15                                     \$19

S                    60                                   \$22                                     \$20

T                    34                                   \$30                                      \$33

U                   50                                   \$10                                       \$11

V                   13                                   \$50                                        \$55

1) If the lower-of-cost-or market rule (LCM) is used what should it report as the balance of inventory if one market value is computed for all inventories?

2)If lower-of-cost-or market rule (LCM) is used what should be reported as the balance of inventory if a market value is computed for each inventory type?

item:             INVENTORY BALANCE:

R                         \$

S                          \$

T                           \$

U                          \$

V                          \$

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