P9-10 (Lower-of-Cost-or-Market) Fiedler Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2010 Selling Unit Cost $7.50 8.20 5.60 3,80 6.40 Replacement & Disposal Profit Cost/Unit Margi/Unit Item Quantity 1.100 $8.40 7.90 5.40 4.20 6.30 $10.50 9.40 7.20 6.30 6.70 $1.80 1.20 0.60 1.50 1.00 1.50 0.90 1.15 0.80 0.70 800 1,000 1,000 1.400 Instructions Greg Forda is an accounting clerk in the accounting department of Fiedler Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he P9-10 (Lower-of-Cost-or-Market) Fiedler Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2010 Selling Unit Cost $7.50 8.20 5.60 3,80 6.40 Replacement & Disposal Profit Cost/Unit Margi/Unit Item Quantity 1.100 $8.40 7.90 5.40 4.20 6.30 $10.50 9.40 7.20 6.30 6.70 $1.80 1.20 0.60 1.50 1.00 1.50 0.90 1.15 0.80 0.70 800 1,000 1,000 1.400 Instructions Greg Forda is an accounting clerk in the accounting department of Fiedler Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he