Inventory item Z8 has a cost price of $30 and a net realisable value $25, while item D3 has a cost price of $20, a net realisable value $25 and a replacement cost of $21. Under the lower of cost and net realisable value rule of inventory valuation, applied on an item-by-item basis, the value of inventory is:

Select one:

a.

$51

b.

$45

c.

no response is correct

d.

$50