Presented below is data relative to the 12/31/12 inventory of Lance Company:

Number Units Original Cost Total Current

Item In Inventory Per Unit Original Cost Replacement Cost

A 5,000 $1.09 $5,450 $1.08

B 5,000 1.30 6,500 1.15

C 5,000 1.50 7,500 1.05

D 5,000 1.60 8,000 1.65

E 5,000 1.80 9,000 1.70

Total 25,000 $36,450

Appropriate

Upper Lower Inventory

Limit Limit Designated Valuation

Item ("Ceiling") ("Floor") Market (Totals)

A

B

C

D

E

Total

Additional Data:

Selling price is $2.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 35% of selling price.

Instructions

Complete the last four columns above.