Reporting Inventory at Lower of Cost or Market – Jones Company is preparing the annual financial statements dated December 31, 2012. Ending inventory information about the five major items stocked for regular sale follows:
|
ENDING INVENTORY, 2012 |
|||
|
Item |
Quantity on Hand |
Unit Cost When |
Replacement Cost |
|
A |
50 |
$15 |
$12 |
|
B |
80 |
30 |
40 |
|
C |
10 |
48 |
52 |
|
D |
70 |
25 |
30 |
|
E |
350 |
10 |
5 |
Required:
Compute the valuation that should be used for the 2012 ending inventory using the LCM rule applied on an item-by-item basis.