The December 31, 2018 inventory of the COYOTE Co. consisted of 3 products, for which the following information is provided.

Original Replacement Est. Disposal Selling Normal Profit

Product Cost Cost Cost Price on Sales

A $300 $280 $100 $500 30%

B 400 350 90 600 15

C 500 600 120 700 10

Instructions: Using the lower of cost or market approach on an individual item basis,

1. Compute the inventory valuation that should be reported for each product on 12/ 31/2018.
2. Prepare any necessary journal entries for inventory on 12/31/2018.