Ramps by Jake, Inc., manufactures skateboard ramps. The company uses independent sales representatives to market its products and pays a commission of 8% on each sale. Data regarding the five styles of ramps in the company€™s inventory at December 31, 2014, follow. The normal profit margin on each style is expressed as a percentage of the item€™s selling price.

Required:
Determine the appropriate inventory value to use for each item in the company€™s December 31,
2014, inventory under U.S.GAAP.

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Normal Original Cost Replacement Cost Selling Price Profit nventory Item Margin % Style A Style B Style C Style D Style E $150 198 83 275 420 $155 195 $210 275 130 290 450 35% 40 30 30 20 280 430