At the end of its accounting cycle, Red Corp. provided the following chart to its accountants:

	Cost	Replacement Cost	Net Realizable Value (NRV)	NRV less Normal Profit
Item A	$550	$570	$580	$500
Item B	$875	$870	$810	$790
Item C	$300	$260	$275	$160
Item D	$50	$75	$90	$88
Item E	$230	$200	$210	$197
Item F	$770	$600	$575	$500

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Assume Red Corp. applies Lower of Cost or Net Realizable Value (LCNRV) directly to each individual inventory item. What is the total ending inventory value Red Corp. will report?

Question 7 options:

	$2,470
	$2,540
	$2,445
	$2,575

Question 8

Assume Red Corp. applies Lower of Cost or Market (LCM) directly to each individual inventory item. What is the ending inventory value Red Corp. will report for Item A?

Question 8 options:

	$500
	$550
	$580
	$570

Question 9

Assume Red Corp. applies Lower of Cost or Market (LCM) directly to each individual inventory item. What is the ending inventory value Red Corp. will report for Item B?

Question 9 options:

	$790
	$870
	$810
	$875