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