E9-1 (Lower-of-Cost-or-Market) The inventory of Oheto Company on December 31, 2011, consists of the following items. Part No. Quantity Cost per Unit Cost to Replace per Unit 110 600 $95 $100 111 1,000 60 52 112 500 80 76 113 200 170 180 120 400 205 208 121a 1,600 16 14 122 300 240 235 a Part No. 121 is obsolete and has a realizable value of $0.50 each as scrap. Instructions a) Determine the inventory as of December 31, 2011, by the lower-of-cost-or-market method, applying this method directly to each item. b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.