Witte Inc. carries four items in inventory. The following per-unit data relate to these items at the end of 2011:

Instructions:
1. Calculate the value of the inventory under each of the following methods:
(a) Cost
(b) The lower of cost or market applied to the individual inventory items
(c) The lower of cost or market applied to the inventory categories
(d) The lower of cost or market applied to the inventory as a whole
2. Prepare any journal entries necessary to reflect the proper inventory valuation assuming inventory is valued at:
(a) Cost
(b) The lower of cost or market applied to the individual inventory items
(c) The lower of cost or market applied to the inventory categories
(d) The lower of cost or market applied to the inventory as awhole

Replacement Cost Estimated Selling Sales Price Cost Normal Profit Units Cost Category I Commodity A 2,500 $10.50 7.00 $10.00 6.50 $13.00 9.75 $1.25 0.75 $%2.00 1.10 Commodity B..1.850 Category 2: 4,000 2.950 3.00 6.50 2.25 7.00 4.65 7.25 0.75 1.25 0.60 1.50 Commodity D