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The inventory of Oheto Company on December 21, 2013, consists of the following items:
Part No. Quantity Cost per Unit Cost to Replace per Unit110 600 $95 $100111 1000 60 52112 500 80 76113 200 170 180120 400 205 208121 a 1600 16 14122 300 240 235
a-part no 121 is obsolete and has a realizable value of $.50 each as scrap
instructionsa) determine the inventory as of December 31, 2013, by the lower-of-cost-or-market 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.
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