Brief Exercise 9-4

Presented below is information related to Wildhorse Inc.s inventory, assuming Wildhorse uses lower-of-LIFO cost-or-market.

(per unit)	Skis	Boots	Parkas
Historical cost	$266.00	$148.40	$74.20
Selling price	296.80	203.00	103.25
Cost to distribute	26.60	11.20	3.50
Current replacement cost	284.20	147.00	71.40
Normal profit margin	44.80	40.60	29.75

Determine the following:

(a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis.

Ceiling Limit	$
Floor Limit	$

(b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots.

The cost amount

$

(c) The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market.

The market amount

$