Brief Exercise 9-4

Presented below is information related to Ivanhoe Inc.s inventory, assuming Ivanhoe uses lower-of-LIFO cost-or-market.

(per unit) Skis Boots Parkas Historical cost Selling price Cost to distribute Current replacement cost Normal profit margin $197.60 $110.24 150.80 8.32 109.20 30.16 220.48 19.76 211.12 33.28 $55.12 76.70 2.60 53.04 22.10 Determine the following (a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for Ceiling Limits Floor Limit (b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots The cost amount (c) The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market. The market amount