The inventory of 3T Company on December 31, 2014, consists of the following items.\nPart No. Quantity Cost per Unit Cost to Replace per Unit\n110 600 $
The inventory of 3T Company on December 31, 2014, consists of the following items.
\r\nPart No. Quantity Cost per Unit Cost to Replace per Unit
\r\n110 600 $ 90 $100
\r\n111 1,000 60 52
\r\n112 500 80 76
\r\n113 200 170 180
\r\n120 400 205 208
\r\n121a 1,600 16 14
\r\n122 300 240 235
\r\naPart No. 121 is obsolete and has a realizable value of $0.20 each as scrap.
\r\nInstructions
\r\n(a) Determine the inventory as of December 31, 2014, by the lower-of-cost-or-market method, applying this method directly to each item.
\r\n(b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.