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Market value means the replacement cost of the inventory Replacement cost may be in the form of purchase cost or manufacturing cost. In other words, market value is amount that we would have to pay to acquire inventory of the same quantity and quality through purchase or through manufacture. However, upper and lower limits have been placed on the market value of inventory
Assume it is the end of December and your retail store has digital cameras in inventory. You purchased the cameras directly from the manufacturer at a cost of $ each and you planned to sell the cameras at a retail price of $, a price that is in line with competing retailers.
