[This is a variation of E 9-2, modified to focus on the lower of cost or market.] The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows:

Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal profit is 30% of selling price.

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

E 9-2

Per Unit Product Replacement Cost Cost Selling Price $ 40 $ 60 $35 A 80 40 70 100 55 80 130 D 100 70 20 28 30