Question 7 In some instances, accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit inventory price in the following cases, under the lower-of-cost-or-market rule. Cases 1 2 3 4 5 Cost $17.90 $18.20 $15.20 $15.30 $14.90 Net realizable value 14.40 17.00 16.00 11.10 15.60 Net realizable value less normal profit 12.70 15.20 14.45 9.50 14.20 Market (replacement cost) 16.70 19.40 14.30 10.40 16.50

Question 7 In some instances, accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit inventory price in the following cases, under the lower-of-cost-or- market rule. Cases 1 2 A 5 Cost $17.90 $18.20 $15.20 $15.30 $14.90 Net realizable value 14.40 17.00 16.00 11.10 15.60 Net realizable value less normal profit 12.70 15.20 14.45 9.50 14.20 Market (replacement cost) 16.70 19.40 14.30 10.40 16.50 Cases Unit inventory price $ $ $ Click if you would like to Show Work for this question: Open Show Work