Jones Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows:
|
ENDING INVENTORY, CURRENT YEAR
|
| Item |
Quantity
on Hand |
Unit Cost When Acquired (FIFO) |
Net Realizable
Value (Market)
at Year-End |
| A |
|
55 |
|
|
$ |
20 |
|
|
$ |
17 |
|
| B |
|
85 |
|
|
|
35 |
|
|
|
45 |
|
| C |
|
15 |
|
|
|
53 |
|
|
|
57 |
|
| D |
|
75 |
|
|
|
30 |
|
|
|
35 |
|
| E |
|
355 |
|
|
|
15 |
|
|
|
10 |
|
|
Required:
Compute the valuation that should be used for the current year ending inventory using the LCM rule applied on an item-by-item basis.