Nolen Company Is Preparing the Annual Financial Statements Dated December

Essay

Nolen Company is preparing the annual financial statements dated December 31 2016. Information about inventory stocked for regular sale follows: $$\begin{array} { c c c c } \text { Item } & \begin{array} { c } \text { Quantity } \\\text { on Hand }\end{array} & \begin{array} { c } \text { Unit Cost } \\\text { When Acquired }\end{array} & \begin{array} { c } \text { Replacement Cost } \\\text { (market) at year end }\end{array} \\\hline\mathrm { A } & 50 & \$ 20 & \$ 19 \\\mathrm { B } & 100 & 45 & 45 \\\mathrm { C } & 20 & 59 & 62 \\\mathrm { D } &40&40&36\end{array}$$ Instructions
Compute the valuation for the December 31 2016 inventory using the lower-of-cost-or-market basis.