Determining Inventory Values in Applying Lower-of-Cost-or-Market

Information related to two products of AMC Corporation follows. Compute the inventory values reported in the balance sheet for Products A and B under the lower-of-cost-or-market rule.

	Product A	Product B
Estimated selling price	$24	$64
Original cost (LIFO)	12	60
Replacement cost	28	56
Cost of disposal	2	3
Gross margin	6	19

Product A inventory value
Product B inventory value