Lower of cost or market

Writing (Lower-of-Cost-or-Market) Fiedler Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. lhe following information is available from the company's inventory records as Of December 31, 2025. Item c Quantity 1,100 1,000 1,000 1,400 Unit Cost S7.50 560 Replacement Cost/ Unit ss.40 7.90 5.40 4.20 6.30 Selling Price/ Unit SIO.50 940 720 6.30 6.70 Completion & Disposal Cost/ Unit $1.50 0.90 1.15 0.8) 0.70 Profit Margin/ Unit $1.80 1.20 0.60 1.50 1.00 Instructions Greg Forda is an accounting clerk in the accounting department of Fiedler CQ, and he cannot under- Stand why the market value keeps Changing from replacement COSt to net realizable value to something that he Cannot even figure Out. Greg is very confused, and he is the one who records inventory purchase and calculates ending inventory. You are the manager of the department and an accountant. a. Calculate the lower-of-cost-or-market using the individual-item approach. b. Show the journal entry he will need to make in order to Write down the ending inventory from COSt to market. c. Writea memo to Greg explaining What designated market value is as well as how it is computed. Use your calculations to aid in your explanation.