Market value of the inventory


Problem: Year-end inventory cannot merely be based on a company's cost and whichever cost flow method the company is currently using. It needs to be further tested under the Lower of Cost or Market Rule for the potential need to mark it down. What are the "tests" used to determine the ceiling and the floor values to which the market value of the inventory is applied in order to determine what the "market" value is to the company?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Market value of the inventory
Reference No:- TGS01619106

Now Priced at $25 (50% Discount)

Recommended (94%)

Rated (4.6/5)