Reference no: EM132648210

Perez Animal Feeds has developed the following data for lower-of-cost-or-market valuation for its inventory products:

                   Cost                 Market

Large Animals:

Cattle     $400,000             $380,000

Horse         875,000            920,000

Small Animals:

Cat             550,000          700,000

Dog             90,000          165,000

Ferret            280,000        245,000

Required:

Problem 1: Determine the amount of inventory to appear in the balance sheet assuming LCM applied to:

1. Individual item approach Group by group approach
2. Total inventory approach.