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, 20X1, follow. The normal profit margin on each style is expressed as a percentage of the item’s selling price. Jake has multiple units of each style and uses the LIFO cost flow assumption.

Required:

Jake applies LCM to each individual unit. Determine the appropriate inventory value to use for each item in the company’s December 31, 20X1, inventory under U.S. GAAP.

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Normal Inventory Item Replacement Cost Selling Price Profit Cost Margin % $155 $210 Style A Style B Style C Style D Style E $150 35% 198 195 275 40 83 77 130 30 275 280 290 30 420 430 450 20