Hello, I am confused about the LCNRV Rule. In the case that I am working on, it says that at the end of fiscal year, the NRV of the units was $18.

So, do I compare the NRV to the cost of inventory? And if I am supposed to calculate the cost using Specific ID method, do I take the ending balance of inventory $ which I calculated using S/I, and divide by the ending balance of inventory units?

Lastly, what are the implications of having a higher or lower cost of inventory when compared to the NRV?

Thank you!