1. (6 points) Affliction Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, 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	$130	$98	$95	$85	$105	$80
Cost	100	80	60	80	65	42
Replacement cost	110	65	70	50	70	40
Estimated selling expense	25	25	20	20	25	25
Normal profit	30	18	25	27	22	20

Instructions

Using the lower-of-cost-or-market rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2014, for each of the inventory items above.