Lower of Cost or Market Rule for Valuing Inventory

This video shows how to apply the lower-of-cost-or-market rule to value inventory.  A comprehensive example is presented to illustrate how the original cost of the inventory is compared to its "market" value (the middle value of replacement cost, net realizable value, and net realizable value minus the normal profit) to determine whether an inventory writedown is necessary.  The video then demonstrates how to record the appropriate writedown with a journal entry.

Edspira is your source for business and financial education.  To view the entire video library for free, visit http://www.Edspira.com

To like us on Facebook, visit Facebook: Edspira

Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD.  The goal of Michael's life is to increase access to education so all people can achieve their dreams.  To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com

To follow Michael on Facebook, visit
Facebook: Prof.Michael.McLaughlin

To follow Michael on Twitter, visit
Twitter: Prof_McLaughlin—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
*Patreon: prof_mclaughlin
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thinkific.com
—
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast...
* Spotify: https://open.spotify.com/show/4WaNTqV...
* Website: https://www.edspira.com/podcast-2/
—
GET TAX TIPS ON TIKTOK
* TikTok: prof_mclaughlin
—
ACCESS INDEX OF VIDEOS
* https://www.edspira.com/index
—
CONNECT WITH EDSPIRA
* Facebook: Facebook: Edspira
* Instagram: Instagram: edspiradotcom
* LinkedIn: LinkedIn: edspira
—
CONNECT WITH MICHAEL
* Twitter: Twitter: Prof_McLaughlin
* LinkedIn: LinkedIn: prof-michael-mclaughlin
—
ABOUT EDSPIRA AND ITS CREATOR
* https://www.edspira.com/about/
* https://michaelmclaughlin.com

• #education
• #lower_of_cost_or_market
• #inventory
• #financial_accounting
• #accounting
• #finance
• #writedown