[This is a variation of E 9-1, modified to focus on the lower of cost or market.] Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows:

Required:
What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory?

E 9-1

Product 1 Product 2 Product 3 $ 90 $20 $50 Cost Replacement cost 18 85 40 Selling price Selling costs Normal profit 40 70 120 40 10 30 12