Problem
Oslo Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows:
|
Product #1
|
Product #2
|
|
Historical cost
|
$10
|
$ 18
|
|
Replacement cost
|
11
|
14
|
|
Estimated cost to dispose
|
3
|
7
|
|
Estimated selling price
|
20
|
33
|
In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Oslo use for products #1 and #2, respectively?