QUESTION 46

1. Luna has the following information about its inventory:

   	Home Equipment				Home Supplies				Office Equipment				Office Supplies
   Sales price	$	268			$	138			$	346			$	158
   Cost		156				101				263				151
   Cost to sell		26				10				32				14

   Note from the descriptions that there are two categories of inventory: home and office.

   In applying the lower of cost or net realizable value rule on a category basis, the inventory of the office category would be valued at:

   	A.	$407.
   	B.	$458.
   	C.	$368.
   	D.	$414.