If the working papers correlating with this textbook are not used, omit Problem 6-4B. Data on the physical inventory of Chiron Co. as of December 31, 2012, are presented in the working papers. The quantity of each commodity on hand has been determined  and recorded on the inventory sheet. Unit market prices have also been determined as of December 31 and recorded on the sheet. The inventory is to be determined at cost and also at the lower of cost or market, using the first-in, first-out method. Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows:

Record the appropriate unit costs on the inventory sheet, and complete the pricing of the inventory. When there are two different unit costs applicable to an item:
1. Draw a line through the quantity, and insert the quantity and unit cost of the last purchase.
2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase.
3. Total the cost and market columns and insert the lower of the two totals in the Lower of C or M column. The first item on the inventory sheet has been completed as an example.

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Next-to-the-Last Purchases Invoice Last Purchases Invoice Quantity Purchased Quantity Purchased Unit Unit Description Alpha Cost Cost $ 59 $ 60 40 30 Beta 180 25 170 15 Charlie 130 128 20 15 Echo 150 25 100 27 Frank 540 550 15 George 90 16 100 15 Killo 395 394 8. 4 Quebec 500 500 Romeo 80 26 75 25 Sierra 260 5 250 Whiskey X-Ray 100 16 17 115 10 750 740