Witte Inc. carries four items in inventory. The following per-unit data relate to these items at the end of 2013:

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 (Use a valuation allowance.)
(d) The lower of cost or market applied to the inventory as a whole

Replacement Estimated Selling Normal Profit Units Cost Cost Sales Price Cost Category 1: Commodity A Commodity B 2,500 $10.50 7.00 $10.00 $13.00 $1.25 $2.00 1,850 6.50 9.75 0.75 1.10 Category2: Commodity C 4,000 3.00 2.25 4.65 0.75 0.60 Commodity D 2,950 6.50 7.00 7.25 1.25 1.50