a. Jeri Company sells three different categories of tools (small, medium and large). The cost and net realizable value of its inventory of tools are as follows. 

Determine the value of the company’s inventory under the lower-of-cost-or-net realizable value approach.

b. Early in 2022, Fedor Company switched to a just-in-time inventory system. Its sales and inventory amounts for 2021 and 2022 are shown below 

Determine the inventory turnover and days in inventory for 2021 and 2022. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales across the 2 years.

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Net Realizable Value Cost Small Medium Large $ 64,000 260,000 152,000 167,000 2021 2022 Sales revenue Cost of goods sold Beginning inventory Ending inventory $3,120,000 1,200,000 $3,713,000 1,425,000 210,000 170,000 90,000