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In some instances, accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit inventory price in the following cases, under
In some instances, accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit inventory price in the following cases, under the lower-of-cost-or-market rule.
| Cases | Cost | Net realizable value | Net realizable value less normal profit | Market (replacement cost) |
| 1 | $15.90 | 14.5 | 12.8 | 14.8 |
| 2 | $16.10 | 19.2 | 17.6 | 17.2 |
| 3 | $15.90 | 15.2 | 13.75 | 12.8 |
| 4 | $15.90 | 10.4 | 8.8 | 9.7 |
| 5 | $15.90 | 16.4 | 14.8 | 16.8 |
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