Lower of Cost or Market The Stiles Corporation uses the lower of cost or market method for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows:
|
Product A |
Product B |
|
|
Historical cost |
$68 |
$91 |
|
Replacement cost |
60 |
93 |
|
Estimated cost of disposal |
32 |
52 |
|
Estimated selling price |
140 |
200 |
Required
What is the correct inventory value for each product?