Pal Distributers Inc. values its inventory at the lower of cost and net realizable value. The following data came from the 2020 inventory, which consisted of two items:

Item # 130Item # 140Original cost$12,000$15,000Selling price15,00026,000Estimated selling costs5,00010,000Replacement cost13,00015,000Normal profit margin1,5001,000

The appropriate carrying value for the entire inventory when applying the lower of cost and net realizable value rule using net realizable value on an item-by-item basis would be

Pal Distributers Inc. values its inventory at the lower of cost and net realizable value. The following data came from the 2020 inventory, which consisted of two items: Item # 130 Item # 140 Original cost $12,000 $15,000 Selling price 15,000 26,000 Estimated selling costs 5,000 10,000 Replacement cost 13,000 15,000 Normal profit margin 1,500 1,000 The appropriate carrying value for the entire inventory when applying the lower of cost and net realizable value rule using net realizable value on an item-by-item basis would be O $25,000. O $26,000. O $27,000. O $28,000.Pal Distributers Inc. values its inventory at the lower of cost and net realizable value. The following data came from the 2020 inventory, which consisted of two items: Item # 130 Item # 140 Original cost $12,000 $15,000 Selling price 15,000 15,000 Estimated selling costs 5,000 5,000 Replacement cost 13,000 15,000 Normal profit margin 1,500 1,000 The appropriate carrying value for the entire inventory when applying the lower of cost and net realizable value rule using net realizable value to the inventory as a whole would be O $15,000. O $20,000. O $27,000. O $28,000.K-tel Industries had the following activity with one of its inventory items during the current period: Units Unit Cost Beginning inventory 30 $8.00 Purchase December 5 80 10.50 Sale December 11 (40) Purchase December 17 60 12.00 Sale December 26 (70) Using a perpetual inventory system and the FIFO cost formula, the cost of goods sold was O $975. O $1,080. O $1,175. O $1,300