Determining Inventory Values in Applying Lower-of-Cost-or-Market

Information related to two products of AMC Corporation follows. Compute the inventory values reported in the balance sheet for Products A and B under the lower-of-cost-or-market rule.

	Product A	Product B
Estimated selling price	$54	$144
Original cost (LIFO)	27	135
Replacement cost	63	126
Cost of disposal	4	7
Gross margin	14	43

Product A inventory value
Product B inventory value