1. Applying Lower of Cost or Market value (LCM) to following items to determine fare inventory value.
2. Make necessary Journal entry in case there is difference in inventory value compare to its original cost.

Smart Company manufactures different products (A-I). The company attempts to obtain a 10% gross margin on selling price. At December 31, 2019, the above finished product appear in the companys inventory.

Product Inventory cost Sales Discount Sales Price Replacement Cost A 1,763 113 2,550 1,380 B 1,688 135 2,754 1,290 3,113 180 4,590 1,830 D 3,600 293 6,120 3,000 E 1,939 124 2,805 1,518 F 1,856 149 3,029 1,419 G 3,424 198 5,049 2,013 H 3,960 322 6,732 3,300 2,133 136 3,086 1,670