Exercise 17.2 (Static) Using the lower of cost or net reallzable value method. LO 17-3 The following information concerns four items that Katy Mayfield Clothiers for Women has in its ending inventory on December 31. Two of these items are in the accessories department, and two are in the women leisure wear department Net Realizable Quantity Unit Cost value Accessories Item 620 250 $30 Item 621 160 56 $.33 53 women leisure wear Item 726 Item 727 110 96 140 92 103 98 1. What is the valuation of ending inventory if the firm uses the lower of cost or net realizable value method and applies it on an item- by-item basis? 2. If the company applies the lower of cost or net realizable value method on the basis of total cost or total net realizable value, what is the value of ending inventory? 3. If the company elects to apply the lower of cost or net realizable value method to inventory groups, what is the value of the ending inventory? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the valuation of ending inventory if the firm uses the lower of cost or net realizable value method and applies it on an item- by-item basis? Lower of Cost or Market by Item Description Hem by Item Accessories Item 620 Item 021 Total Accessories Women leisure wear Item 726 Item 727 Women leisure wear Totals Ending inventory valuation Net Quantity Unit Cost Realizable Total Cost Value Total Net Realizable Value Lower of Cost or Market Required 2 >>