Inventory on the balance sheet 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: $262,450 Total market: $266,660 Lower-of-cost-or-market (LCM): $246,700 The inventory would appear in the current assets section, as follows: Inventory-at lower of cost (first-in, first-out method) or market $fill in the blank 3 .