Question: Digital Camera Shop Inc. uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31.
|
|
Units
|
Cost per Unit
|
Market per Unit
|
|
Cameras
|
Minolta 5
|
$170
|
$158
|
|
Canon 7
|
145
|
152
|
|
Light Meters
|
Vivitar 12
|
125
|
114
|
|
Kodak 10
|
120
|
135
|
Instructions:
Question 1: What amount should be reported on Digital Camera Shop's financial statements, assuming the lower-of-cost-or-market rule is applied?
Question 2: Determine LCM valuation.