Part I Lower-of-cost-or-market.

The December 31, 2010 inventory of Gwynn Company consisted of four products, for which certain information is provided below. Replacement Estimated Expected Normal Profit Product Original Cost Cost Disposal Cost Selling Price on Sales

A $25.00 $22.00 $6.50 $40.00 20% B $42.00 $40.00 $12.00 $48.00 25% C $120.00 $115.00 $25.00 $190.00 30%

compute the inventory valuation that should be reported for each product on December 31, 2010. Assume there are 1000 units for each product.

A- the company uses LCNRV and item by item basis.

B- the company uses LCM and item by item basis