If the cost of an item of inventory is 60 the current replacement cost is 65 and the selling price is 95 the amount included in inventory according to the lower of cost or market concept is?

Inventory is generally carried on the balance sheet at its historical cost to the firm. This represents the most accurate value since it was an amount actually paid by the firm, not an estimate.

If the market value changes upwards, the balance sheet value is not changed since accounting principles generally favor the more conservative (lower) value. If however the market value of inventory decreases (through obsolescence for example), then the inventory value is adjusted downward to accurately reflect this and ensure the value is not materially overstated on the firm's balance sheet.

The retail price is never used for inventory valuation. The retail price will be used only for the income statement.

So, using your example, the amount included in inventory would be 60.