(Lower of Cost or Market) The inventory of Oheto Company on December 31, 2013, consists of the following items.
|
Part No. |
Quantity |
Cost per Unit |
Cost to Replace per Unit |
|
110 |
600 |
$ 95 |
$100 |
|
111 |
1,000 |
60 |
52 |
|
112 |
500 |
80 |
76 |
|
113 |
200 |
170 |
180 |
|
120 |
400 |
205 |
208 |
|
121a |
1,600 |
16 |
14 |
|
122 |
300 |
240 |
235 |
Instructions
(a) Determine the inventory as of December 31, 2013, by the lower of cost or market method, applying this method directly to each item.
(b) Determine the inventory by the lower of cost or market method, applying the method to the total of the inventory.