Compute the lower-of-cost-or-market valuation for Olsson inventory.?

3 Answers

• It depends on how you want to apply it. If it is applied to each separate category (normally used):

  Inventory

  Cameras $12,136(Cost Data)

  Camcorders 8,357(Cost Data)

  DVDs 11,435 (Market Data)

  LCM = $31,938

  If it is applied to the total inventory:

  Inventory

  Cameras . . . . $12,136(Cost Data) $13,236 (Market Data)

  Camcorders . . . .8,357(Cost Data) . 8,707 (Market Data)

  DVDs . . . . . . . 12,445(Cost Data) .11,435 (Market Data)

  = . . . . . . . . . .$32,938 . .. . . . . . .$33,378

  LCM = $32,938

  Source(s): Accounting Fan

• you take the lowest of each item and add them up, thats your answer

• 31928*