Lower of Cost or Net Realizable Value (LCNRV) Rule

Determine the proper total inventory value for each of the following items in Erik Companys ending inventory: a. Erik has 500 rolls of camera film that have become obsolete with the advent of digital cameras. The films cost $3.30 each and are normally sold for $6.60. To clear out these old films, Erik will drop their selling price to $1.98. There are no related selling costs. b. Erik has four cameras in stock that have been used as demonstration models. The cameras cost $760 and normally sell for $960. Because these cameras are in used condition, Erik has set the selling price at $720 each. Expected selling costs are $20 per camera. New models of the camera, already on order, will cost Erik $800 and will sell for $1,040.

	Final inventory value
a.
b.