Determining Lower of Cost or Net Realizable Value (NRV)

Crane Company had the following inventory at December 31, 2017.

Unit Price

Quantity Cost NRV

Desks

Model 9001 70 $190 $210

Model 9002 45 280 268

Model 9003 20 350 360

Cabinets

Model 7001 120 60 64

Model 7002 80 95 88

Model 7003 50 130 126

a. Determine the ending inventory amount by applying the net realizable value rule to:

1. Each item of inventory.

$Answer

2. Each major category of inventory.

$Answer

3. Total inventory.

$Answer