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  3. (6 points) affliction company uses the lower-of-co

(6 points) Affliction Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its...

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Question

Accounting

  1. (6 points) Affliction Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below.

Item D

Item E

Item F

Item G

Item H

Item I

Estimated selling price

$130

$98

$95

$85

$105

$80

Cost

100

80

60

80

65

42

Replacement cost

110

65

70

50

70

40

Estimated selling expense

25

25

20

20

25

25

Normal profit

30

18

25

27

22

20

Instructions

Using the lower-of-cost-or-market rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2014, for each of the inventory items above.

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