Lower of Cost or Market The following information is taken from the records of the Aden Company:
|
Product |
Group |
Units |
Cost/Unit |
Market/Unit |
|
A |
1 |
600 |
$1.00 |
$0.80 |
|
B |
1 |
250 |
1.5 |
1.55 |
|
C |
2 |
150 |
5 |
5.25 |
|
D |
2 |
100 |
6.5 |
6.4 |
|
E |
3 |
80 |
25 |
24.6 |
Required
What is the correct inventory value if the company applies the lower of cost or market to each of the following?
1. Individual items
2. Groups of items
3. The inventory as a whole