The FASB decided to grant an exception to the LCNRV approach for companies that use the LIFO or retail inventory methods. LIFO inventory is already stated at below current costs $($because it is stated at older costs$).$ Therefore, using the LCNRV would wind up adjusting inventory up$,$ which would increase net income. This would not be a conservative approach.

The approach which these companies apply is Lower of Cost or Market. Use this approach to determine the proper unit inventory price in the following cases $($number your responses$)$: