Lower of Cost or Market: Individual vs. Aggregate
Refer to Practice 9-11. Apply lower-of-cost-or-market accounting to the inventory as a whole. What total amount should be reported as inventory in the balance sheet?
Lower of Cost or Market
The following information pertains to the company’s ending inventory:
Apply lower-of-cost-or-market accounting to each inventory item individually. What total amount should be reported as inventory in the balance sheet?