Question

Overall Instructions:

Prepare the report in good form as if you were submitting it to the financial vice-president of the company. It should be neat, well organized, and easy to follow. The standard is that anyone with accounting knowledge should be able to pick up your paper and quickly see what it accomplishes.

The spreadsheet should be programmed to make all calculations. For revisions, you should need only to type in the new information.

Specific rules include:
Type each item of information only once.
Never embed information in formulas.
All information and solutions should be clearly labeled.

The following information is available from the inventory records Involute Apparel as of December 31, 2028.

Item	Quantity	Unit Cost	Replacement Cost/Unit	Estimated Selling Price/Unit	Completion & Disposal Cost/Unit	Normal Profit Margin/Unit
A	1,100	$15.00	$16.80	$21.00	$3.00	$3.60
B	800	$16.40	15.80	18.80	1.80	2.40
C	1,000	11.20	10.80	14.40	2.35	1.30
D	1,000	7.60	8.40	12.30	1.60	3.00
E	1,400	12.80	12.60	12.70	1.40	2.00

Instructions

(a) Determine, for each item, the lower-of-cost-or-net-realizable value.

(b) Determine for each item, the lower-of-cost-or-market value.

Answer 1