Lower-of-Cost-or-Market Method On the basis of the data shown below: Inventory Cost per Market Value per Unit Quantity Unit (Net Realizable Value) Item $52 A13Y BJ54 97 186 $57 28 31 Determine the value of the inventory at the lower of cost or market by applying lower of cost or market to each inventory item, as shown in Exhibit 9. EXHIBIT 9 Determining Inventory at Lower of Cost or Market (LCM) AWN 3 Item 4 Echo 5 Foxtrot 6 Sierra 7 Tango 8 Total Inventory Cost per Quantity Unit 400 $10.25 120 22.50 600 280 14.00 Market Value per Unit (Net Realizable Value) Cost $ 9.50 $ 4.100 24.10 2.700 7.75 4,800 14.75 3,920 $15.520 Total Market $ 3.800 2.892 4,650 4,130 $15.472 LCM $ 3.800 2,700 4,650 3,920 $15.070 8.00