Problem II: (15 pts) Barton Corp. has three products in its ending inventory. It will be using the lower of cost or market method to determine the inventory valuation for financial statement purposes. Specific cost per unit data for each of its products is as follows: Cost Replacement Cost Selling price Disposal costs Normal profit margin Product #1 $50 72 95 5 20 Product #2 $140 145 225 15 60 Product #3 $260 210 200 0 75 A. Using the information above, complete the following chart: Product #1 Product #2 Product #3 Ceiling Floor Designated Market Value (Continued on the next page) I 4 B. Indicate in the following chart which cost is lower: the original "cost" or the designated market value ("DVM"). Also, indicate with a "yes" or "no" whether the company will need to make an adjustment to write its inventory down. B. Indicate in the following chart which cost is lower the original "cost" or the designated market value ("DVM"). Also, indicate with a "yes" or "no" whether the company will need to make an adjustment to write its inventory down. Product #1 Product #2 Product #3 Which is lower: cost or DMV? Is a write-down necessary? Yes or no