Moore Corporation uses the FIFO cost flow method and has numerous units of two products in its ending inventory. Each is accounted for at the lower of cost or net realizable value under Accounting Standards Update (ASU) 2015-11. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows:
____________________________________Product 1______________Product 2
Historical cost...........................................$ 17.............................$ 45
Replacement cost..........................................15...............................46
Estimated cost to sell.......................................5..............................26
Estimated selling price....................................30.............................100
Required:
1. In pricing its ending inventory using the lower of cost or net realizable value, what unit values should Moore use for products 1 and 2, respectively?
2. Show how your answer would change if Moore is using the LIFO cost flow method.