Data on the physical inventory of Zircon Company as of December 31, 2010, are presented in the working papers. The quantity of each commodity on hand has been determined and recorded on the inventory sheet. Unit market prices have also been determined as of December 31 and recorded on the sheet. The inventory is to be determined at cost and also at the lower of cost or market, using the first-in, first-out method. Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows:

Instructions
Record the appropriate unit costs on the inventory sheet, and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows:
1. Draw a line through the quantity, and insert the quantity and unit cost of the last purchase.
2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase.
3. Total the cost and market columns and insert the lower of the two totals in the Lower of C or M column. The first item on the inventory sheet has been completed as anexample.

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Last Purchases Invoice Next-to-the-Last Purchases Invoice Quantity Purchased Quantity Purchased Unit Cost Unit Cost Description S 60 Alpha 10 Beta 30 30 20 $ 59 180 30 35 175 Charlie 4 20 130 25 129 Echo 9 150 26 100 27 Frank 6 10 565 10 560 George 15 100 100 15 14 Killo 6 10 385 384 Quebec 12 400 500 Romeo 7 80 22 50 21 Sierra 3 250 260 22 745 Washburn 2 90 24 80 X-Ray 4 10 750