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Exercise - The inventory of Oheto Company on December 31, 2013, consists of the following items.
Part No.
Quantity
Cost per Unit
Cost to Replace per Unit
110
650
$100
$105
111
1,050
63
55
112
560
84
80
113
230
179
189
120
400
215
218
121a
1,610
17
15
122
390
252
247
(a) Determine the inventory as of December 31, 2013, by the lower-of-cost-or-market method, applying this method directly to each item.
(b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.
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