Lower-of-Cost-or-Market
Items	Quantity	Unit Cost	Replace .Cost/ Unit	Est.Sell. $/Unit	Complet.& Dispos. $/Unit	Norm. Profit Margin/ Unit
A	1,100	$ 7.50	$8.40	$10.50	$1.50	$1.80
B	800	8.20	7.90	9.40	0.90	1.20
C	1,000	5.60	5.40	7.20	1.15	0.60
D	1,000	3.80	4.20	6.30	0.80	1.50
E	1,400	6.40	6.30	6.70	0.70	1.00

A Calculate the Lower -of-Cost- or- Market using the individual-item approach.

B Show the journal entry needed to make in order to write down the ending inventory from cost to market.

C Write a memo to accountant expalining what designated market value is as well as how it is computed. Use your calculations to aid in your explanation.

FYI: This is a problem from Intermediate book only thing missing is a story about Fiedler Co. and the Accountant Greg Forda