Ramps by Andy, Inc. manufactures skateboard ramps. The company uses independent sales representatives to market its products and pays a commission of 10% on each sale. Data regarding the five styles of ramps in the company’s inventory at December 31, 2008, follow. The normal profit margin on each style is expressed as a percentage of the item’s selling price.

Required:
Determine the appropriate inventory value to use for each item in the company’s December 31, 2008, inventory.

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Normal Inventory Original Replacement Selling Item Cost Cost Price Profit Margin % Style 1 $125 $130 $260 35% Style 2 210 190 350 40 Style 3 95 90 130 20 Style 4 460 455 500 30 Style 5 390 390 650 20