The inventory of 3T Company on December 31, 2014, consists of the following items.

Instructions
(a) Determine the inventory as of December 31, 2014, 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?

Transcribed Image Text:

Cost per Unit Cost to Replace per Unit Part No. Quantity 110 111 112 $ 90 $100 52 76 180 600 1,000 60 500 80 113 120 121 122 200 400 170 205 16 208 14 1,600 235 240 300