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	74	$190	$210
Model 9002	49	280	268
Model 9003	24	350	360
Cabinets
Model 7001	124	60	64
Model 7002	84	95	88
Model 7003	54	130	126

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

1. Each item of inventory.

ans

2. Each major category of inventory.

ans

3. Total inventory.

ans