On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9. InventoryItem InventoryQuantity Cost perUnit Market Value per Unit
(Net Realizable Value)
Birch 12 $253 $228
Cypress 18 43 48
Mountain Ash 12 279 262
Spruce 50 275 266
Willow 29 291 299
Inventory at the Lower of Cost or Market
Inventory Item Total Cost Total Market Total Lower of C or M
Birch $ $ $
Cypress
Mountain Ash
Spruce
Willow
Total $ $ $

Determination of Inventory at the Lower of Cost or Market Value:

Item               Quantity      Cost       Market Value            Total

                                        per Unit       per Unit             Determined Value

Birch                  12              $253        $228                  $2,736 (12 x $228)

Cypress            18                    43             48                       774 (18 x $43)

Mountain Ash  12                  279          262                     3,144  (12 x $262)

Spruce             50                 275          266                   13,300 (50 x $266)

Willow             29                  291           299                   8,439 (29 x $291)

Value of Inventory                                                    $28,393

Explanation:

It is a requirement of GAAP that inventory be valued at the lesser amount of its incurred cost and the amount for which it can likely be sold—its net realizable value(NRV).  The Lower of Cost or Market Value or net realizable value (LCNRV) is the method of valuing inventory in compliance with this idea that prudently avoids the overstatement of the amount of inventory.

answerthe above statement is false;