Ryan Ray Cookware, Inc. has unfinished woks in its inventory with a sales value of $60,000. The company estimates that it will have to spend $12,000 to complete production of these woks. Historically, Ryan Ray Cookware, Inc. has had a normal profit margin of 25%. For the purposes of designating a market value, compute the ceiling and floor prices for these woks. Inventory at Sales Val Pan Part Two Determine the designated market value for the following five items in Ryan Ray Cookware's Inc Replacement Cost Inventory Item Woks Frying Pans Roasting Pans Pots: Stock Pots Dutch Oven Pans: Woks Frying Pans Roasting Pans Total Pans Poes Stock Pots Dutch Oven Estimated Completion Costs Total Pots Total Inventory $ 45,000 87,000 72,000 100,000 36,000 Ceiling 42,000 82,000 75,000 96,000 44,000 Ceiling Part Three Determine the lower-of-cost-or market value for Ryan Ray Cookware using the three approved methods: inventory as a whole, the sum of individual items, and the sum of the inventory's major categories. Inventory Item Historical Cost Individual liems Major Categories 80,000 82,000 96,000 50,000 Part Four Allowance for Normal Profit Designated Market Value Floor 60,000 65,600 76,800 40,000 Floor Designated Market Value During a recent meeting of Ryan Ray's accounting staff, Jimmy (the newest staff accountant) suggested that the company should report inventory at a carrying value equal to its historical cost. Jimmy believes that reporting the inventory at its historical cost will maximize the amount of collateral the company has for securing a loan to purchase new P,P,&E. In a paragraph, express your thoughts on Jimmy's assessment.