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Valuing Inventory at Lower-of-Cost-or-Market Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of
Valuing Inventory at Lower-of-Cost-or-Market
Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 25% of the selling price. Determine the value of inventory applying the lower-of-cost-or-market rule to each individual inventory item.
Note: Round each amount to the nearest dollar.
#1 | #2 | #3 | #4 | #5 | |
---|---|---|---|---|---|
Estimated selling price | $330 | $380 | $410 | $500 | $650 |
Original cost (LIFO) | 225 | 240 | 300 | 315 | 450 |
Replacement cost | 250 | 350 | 245 | 330 | 415 |
Inventory at the lower-of-cost-or-market |
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