Lower-of-cost-or-market.

The December 31, 2020 inventory of Gwynn Company consisted of four products, for which certain information is provided below.

ReplacementEstimatedExpectedNormal Profit

ProductOriginal CostCostDisposal CostSelling Priceon Sales

A$24.00$22.00$6.50$40.0020%

B$42.00$40.00$10.00$48.0025%

C$120.00$115.00$25.00$190.0030%

D$19.00$15.80$4.00$26.0010%

Instructions

Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2020.