Identifying a Loss in Applying Lower-of-Cost-or-Net Realizable Value

Information related to three products of Adelle Corporation follows.

	Product A	Product B	Product C
Estimated selling price	$48	$60	$67
Original cost (FIFO)	36	48	43
Cost of disposal	5	10	7
Cost of completion	12	0	5

a. What inventory value is reported in the balance sheet for total inventory under the lower-of-cost-or-net realizable value rule assuming each individual item is evaluated?

	Product A inventory value	Answer
	Product B inventory value	Answer
	Product C inventory value	Answer
	Total inventory value	Answer

b. What inventory value is reported in the balance sheet for total inventory under the lower-of-cost-or-net realizable value rule assuming that the inventory in total is evaluated?

Total inventory value