QUESTION 7

1. A physical inventory of DEF Electronics taken at December 31 reveals the following data:

   ITEM	UNITS ON HAND	COST PER UNIT	NRV PER UNIT
   Audio Equipment
   Receivers	345	$90	$98
   CD Players	260	111	100
   MP3 Players	326	86	95
   Wireless Speakers	204	52	41
   Video Equipment
   Handheld LCDs	480	$150	$125
   VCRs	291	93	84
   Camcorders	212	310	322
   Car Audio Equipment
   Satellite Radios	185	$70	$84
   CD/MP3 Radios	170	97	105

2. Calculate LCNRV by item:

3. 		$280,702
   		$292,777
   		$289,010
   		$273,054