The following information concerns four items that Modern Woman Clothiers has in its ending inventory on December 31. Two of these items are in the accessories department, and two are in the women CEO department.

1. What is the valuation of ending inventory if the firm uses the lower of cost or net realizable value method and applies it on an item-by-item basis?
2. If the company applies the lower of cost or net realizable value method on the basis of total cost or total net realizable value, what is the value of ending inventory?
3. If the company elects to apply the lower of cost or net realizable value method to inventory groups, what is the value of the ending inventory?

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Quantity Unit Cost Net Realizable Value Accessories Item 620 Item 621 Women CEO Item 726 Item 727 $ 32 52 125 $29 55 80 55 70 95 46 102 45