Scotts Sporting Stores Inc. reported the following cost and net realizable value information for inventory at December 31:

Product Item		Units		Unit Cost		Unit NRV
Skates:
Bauer		13		$255		$397
CCM		11		$420		$353
Running shoes:
Adidas		5		$120		$120
Nike		8		$112		$105

Calculate the ending inventory balance for skates and running shoes using the lower of cost and net realizable value for each item.

Ending inventory balance

$

Calculate the ending inventory balance for skates and running shoes using the historical unit costs provided.

Ending inventory balance

$

Compare the difference in the ending inventory amounts. Which amount provides a more faithful representation of the inventory value?

a) Historical Unit Costs

b) Lower of Cost and Net Realizable Value

________________ method provides a more faithful representation of the inventory value.