The inventory of Oheto Company on December 31 2013 consists of the following i

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a Part No. 121 is obsolete and has a realizable value of $0.7 each as scrap.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.