Lower of Cost or Net Realizable Value

Blue Corporation uses the FIFO cost flow assumption. Presented below is information related to Blues inventory:

Product 1 Product 2 Product 3

Cost $50 $90 $75

Selling price 75 120 90

Costs of completion 15 30 20

Costs of disposal 4 2 5

a. Determine the net realizable value for each item.

Product 1 Product 2 Product 3

NRV $_____ $_____ $_____

b. Determine the inventory value