Using the lower the cost or market method, determine the value of ending inventory.

Set up showing the lower limit, upper limit, market or limit column, and LCM

column.

Item Cost Replacement cost Sales price Selling expense Normal profit

(market)

#30 1.94 1.90 2.30 .50 .30

#40 1.75 1.65 2.40 .60 .20

#50 1.40 1.50 2.50 .65 .10