Pronghorn Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available fr the company's inventory records as of December 31, 2025. Item A B C D E Quantity Unit Cost (a) 1,600 1,300 1,500 1,500 1,900 $9.00 9.84 6.72 4.56 7.68 Replacement Cost/Unit $10.08 9.48 6.48 5.04 7.56 Estimated Selling Completion & Disposal Price/Unit Cost/Unit $12.60 11.28 8.64 7.56 8.04 $1.80 1.08 1.38 0.96 0.84 Normal Profit Margin/Unit $2.16 1.44 0.72 1.80 1.20 Greg Forda is an accounting clerk in the accounting department of Pronghorn Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, ar he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.)

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…