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The December 31, 2019 inventory of Jenner Corp. consisted of three products, for which certain information is provided below. (8 points) Product Original Cost Replacement
The December 31, 2019 inventory of Jenner Corp. consisted of three products, for which certain information is provided below. (8 points)
Product | Original Cost | Replacement cost | Estimated disposal cost | Expected selling price | Normal Profit on sales |
A | $24 | $22 | $6.5 | $40 | 20% |
B | $42 | $40 | $10 | $48 | 25% |
C | $120 | $115 | $25 | $190 | 30% |
Instructions
Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2019.
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