The following data concerns inventory at Joshua€™s Boat & Bike Shop:

INSTRUCTIONS
Determine the amount that the company should report as the inventory valuation at cost or net realizable value, whichever is lower. Use each of the following three valuation methods:
1. Lower of cost or net realizable value for each item separately.
2. Lower of total cost or total net realizable value.
3. Lower of total cost or total net realizable value by group.
Analyze: Which valuation method will yield the highest net income?

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Net Realizable Value Unit Cost Quantity Motor Bike Department Model 705 Model 766 Model 815 Boat Department Model BX12 Model BX14 Model BX16 $ 9,810 10,275 12,500 $ 9,775 11,375 12,850 32 52 26 5,400 7,010 5,350 5,300 18 16 7,150 5,110 14