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The following information was taken from the inventory records of the Peter Park Company: Product A B C D E Replacement Cost $4.00 $8.00 $7.00

The following information was taken from the inventory records of the Peter Park Company:

Product

A

B

C

D

E

Replacement Cost

$4.00

$8.00

$7.00

$8.80

$2.50

Selling Price

$7.50

$10.00

$8.00

$10.00

$5.00

Selling Expenses

$1.00

$1.50

$2.50

$2.00

$0.50

Normal Profit

$2.00

$2.00

$1.00

$1.50

$1.50

Cost

$5.00

$9.00

$6.00

$7.50

$3.00

Units

200

400

350

450

500

Floor

Ceiling

Lower-of-cost-or-market

Required:

Determine the valuation of the inventory at the lower of cost or market applied to:

a.

individual items

b.

the inventory as a whole

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