Lower of Cost or Net Realizable Value

You have been assigned to analyze the year$-$end inventory of Kylox Company. This company sells three items of inventory and tracks of the average purchase cost and average selling price each month. At the end of each year $($December$),$ the company uses the lower of cost or net realizable value $($LCNRV$)$ approach to report ending inventory.

The total cost of ending inventory is shown in the bottom right of the dashboard. Also shown in the bottom right are two amounts for net realizable value $($NRV$)$ of ending inventory:

Selling Price$\_$Dec $=$ Average selling price per unit in December times the number of units in ending inventory.

NRV$\_$Dec $=$ Average selling price per unit in December minus estimated selling costs of $$2$ per unit, times the number of units in ending inventory. The estimated selling cost of $$2$ is the average cost of selling a unit of inventory $($packaging$,$ shipping, sales commissions, etc.$)$

Use the dashboard provided to answer the following questions. Begin by selecting Kylox in the filter box at the top left.

Required: