Fiedler Co. follows the practice of valuing its inventory at thelower-of-cost-or-market. The following information isavailable from the company’s inventory records as of December31, 2014.

1 2

Item Quantity Unit unit

Replacement cost/unit

Estimated Selling

price/Unit

Completion & Disposal Cost/Unit

Normal Profit Margin/Unit

A 1,100 8.5 8.5 101.5 1.8 B 900 8.2 7.4 9.1 1.15 1.2 C 1,200 4.6 5.4 7.2 1.100.4

Instructions

Calculate the lower-of-cost-or-market using the “individualitem” approach.