1. (8 points) Smashing Pumpkins 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	$100	$90	$85	$105	$80
Cost	70	80	60	80	45	32
Replacement cost	110	65	70	30	70	30
Estimated selling expense	25	25	20	20	25	25
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, 2014, for each of the inventory items above.

3. (8 points) Smashing Pumpkins 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 $100 $90 $85 $105 $80 Cost 70 80 60 80 45 32 Replacement cost 110 65 70 30 70 30 Estimated selling expense 25 25 20 20 25 25 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, 2014, for each of the inventory items above. 4. (6 points) Mark Price Company uses the gross profit method to estimate inventory for monthly