Question: Based on the data below, how would the inventory appear on the balance sheet, assuming that the lower of cost or market is used and

Based on the data below, how would the inventory appear on the balance sheet, assuming that the lower of cost or market is used and the cost is determined by the first-in, first-out (FIFO) method?

Total cost: $248,000

Total market: $252,350

Lower-of-cost –or market (LCM): $239,350

The inventory would appear in the current assets section, as follows:

Inventory –at lower of cost (first-in, first-out method) or net realizable value

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