Question: Peterson Company is preparing the annual financial statements dated December 31, 2010. Ending inventory information about the five major items stocked for regular sale follows:

Peterson Company is preparing the annual financial statements dated December 31, 2010. Ending inventory information about the five major items stocked for regular sale follows:

Required:
Compute the valuation that should be used for the 2010 ending inventory using the LCM rule applied on an item-by-item basis.

ENDING INVENTORY, 2010 Quatity Unit Cost When Replacement Cost Item on Hand Acquired (FIFO Maket) at Year-End 50 80 10 30 350 $15 30 45 25 10 $12 40 52 30

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