The inventory of Oheto Company on December 31 2013 consists of the following items.
Part No.
Quantity
Cost per unit
Cost to Replace per Unit
110
690
131
138
111
1050
83
72
112
550
110
105
113
260
235
248
120
420
283
287
121a
$1670
22-Jan-00
19
122
360
331
324
a Part No. 121 is obsolete and has a realizable value of $0.7 each as scrap.
Instructions:
(a) Determine the inventory as of December 31 2013 by the lower-of-cost-ormarket method applying this method directly to each item.
(b) Determine the inventory by the lower-of-cost-or-market method applying the method to the total of the inventory.