(Lower of Cost or Market) Riegel Company uses the lower of cost or market method, on an individual item basis, in pricing its inventory items. The inventory at December 31, 2013, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below.
|
|
Item D |
Item E |
Item F |
Item G |
Item H |
Item I |
|
Estimated selling price |
$120 |
$110 |
$95 |
$90 |
$110 |
$90 |
|
Cost |
75 |
80 |
80 |
80 |
50 |
36 |
|
Replacement cost |
120 |
72 |
70 |
30 |
70 |
30 |
|
Estimated selling expense |
30 |
30 |
35 |
35 |
30 |
30 |
|
Normal profit |
20 |
20 |
20 |
20 |
20 |
20 |
Instructions
Using the lower of cost or market rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2013, for each of the inventory items above.