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at what amount should each of the four desks appear in the company rsquo s december 645812

(Lower of Cost or Market) Remmers Company manufactures desks. Most of the company’s desks are standard models and are sold on the basis of catalog prices. At December 31, 2012, the following finished desks appear in the company’s inventory.

Finished Desks

A

B

C

D

2012 catalog selling price

$450

$480

$900

$1,050  

FIFO cost per inventory list   12/31/12

470

450

830

960

Estimated current cost to   manufacture (at December 31,

2012, and early 2013)

460

430

610

1,000  

Sales commissions and estimated   other costs of disposal

50

60

80

130

2013 catalog selling price

500

540

900

1,200  

The 2012 catalog was in effect through November 2012, and the 2013 catalog is effective as of December 1, 2012. All catalog prices are net of the usual discounts. Generally, the company attempts to obtain a 20% gross profit on selling price and has usually been successful in doing so.

Instructions

At what amount should each of the four desks appear in the company’s December 31, 2012, inventory, assuming that the company has adopted a lower of FIFO cost or market approach for valuation of inventories on an individual item basis?

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