Reporting Inventory at Lower of Cost or Market
Jones Company is preparing the annual financial statements dated December 31, 2012. Ending inventory information about the five major items stocked for regular sale follows:

Required:
Compute the valuation that should be used for the 2012 ending inventory using the LCM rule applied on an item-by-itembasis.

Transcribed Image Text:

ENDING INVENTORY, 2012 Unit Cost When Acquired (FIFO) Quantity on Hand Replacenment Cost (Market) at Year-End Item 50 80 10 70 350 $15 $12 40 52 30 30 48 25 10 D