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    Calculation of Lower of Cost or Market nventory Valuation

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    See the attached problem file.

    Determine the proper balance in the allowance to reduce inventory to market at May 31, 2007.

    For the fiscal year ended May 31, 2007, determine the amount of gain or loss that would be recorded due to the change in the allowance to reduce inventory to market.

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    See attached file.

    The method of determining lower of cost or market is a simple comparison. Please see attached spreadsheet to illustrate how these ...

    Solution Summary

    Calculations and reasoning for determining inventory valuation for the lower of cost or market method are provided.