Question - The December 31, 2016 inventory of ABC Company consisted of four products, for which certain information is provided below.
|
Product
|
Original Cost
|
Replacement Cost
|
Estimated Disposal Cost
|
Expected Selling Price
|
Normal Profit on Sales
|
|
A
|
$24.00
|
$22.00
|
$6.50
|
$40.00
|
20%
|
|
B
|
$42.00
|
$40.00
|
$10.00
|
$48.00
|
25%
|
|
C
|
$120.00
|
$115.00
|
$25.00
|
$190.00
|
30%
|
|
D
|
$19.00
|
$15.80
|
$4.00
|
$26.00
|
10%
|
Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2016.