The following information was taken from the inventory records of the Peter Park Company:
|
Product
|
A
|
B
|
C
|
D
|
E
|
|
Replacement Cost
|
$4.00
|
$8.00
|
$7.00
|
$8.80
|
$2.50
|
|
Selling Price
|
$7.50
|
$10.00
|
$8.00
|
$10.00
|
$5.00
|
|
Selling Expenses
|
$1.00
|
$1.50
|
$2.50
|
$2.00
|
$0.50
|
|
Normal Profit
|
$2.00
|
$2.00
|
$1.00
|
$1.50
|
$1.50
|
|
Cost
|
$5.00
|
$9.00
|
$6.00
|
$7.50
|
$3.00
|
|
Units
|
200
|
400
|
350
|
450
|
500
|
|
Floor
|
|
|
|
|
|
|
Ceiling
|
|
|
|
|
|
|
Lower-of-cost-or-market
|
|
|
|
|
|
Required:
Determine the valuation of the inventory at the lower of cost or market applied to:
|
a.
|
individual items
|
|
|
b.
|
the inventory as a whole
|
|