The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required:

Question:

The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles.

Required:
1. Obtain the relevant authoritative literature on the lower-of-cost-or-market rule for valuing inventory using the FASB's Codification Research System at the FASB website (www.fasb.org). Identify the circumstances in which inventory is stated at the lower of cost or market.
2. What are the specific citations that discuss the level of aggregation that should be used in applying the LCM rule?
3. Summarize the discussion.