A business uses the net realisable value method to value its inventory because the market is volatile. This is because it is dependent on fashion trends for its sales figures. The variability makes the selection of net realisable value a wiser choice for valuing inventory than the other options. The business has four groups of items in their inventory. Goods A Goods B Goods C Goods D 500 units 300 units 400 units 200 units @ $28 $35 $40 $25 Inventory at costs Market trends have changed and the business realises that they have overestimated sales of some products. These will have to be discounted significantly. Goods B have retained their value and are expected to still sell for the originally anticipated price of $70 per item. Goods A are only likely to realise $15 per item, Goods C $10 per item and Goods D $40 per item. Calculate the market value for the inventory. Calculate the net realisable value providing explanation for your calculations. Convert the calculation and the reasons for the calculations into an ad hoc report for your manager. Apply appropriate inventory valuation rules: make inventory flow assumptions and record inventory flows. $14 000 $10 500 $16 000 $5 000 $45 500