The following information concerns four items that Modern Woman Clothiers has in its ending inventory on December 31. Two of these items are in the accessories department, and two are in the women CEO department.

	Quantity			Unit Cost				Net Realizable value
Accessories
Item 620		125			$	29			$	32
Item 621		80				55				52
Women CEO
Item 726		55				95				102
Item 727		70				46				45

Questions:

1. What is the valuation of ending inventory if the firm uses the lower of cost or net realizable value method and applies it on an item-by-item basis?
2. If the company applies the lower of cost or net realizable value method on the basis of total cost or total net realizable value, what is the value of ending inventory?
3. If the company elects to apply the lower of cost or net realizable value method to inventory groups, what is the value of the ending inventory?

Complete the 3 questions by entering your answers in the tabs below.

What is the valuation of ending inventory if the firm uses the lower of cost or net realizable value method and applies it on an item-by-item basis?

Lower of cost or market by item
Description	Quantity	Unit Cost	Net Realizable Value	Total Cost	Total Net Realizable Value	Lower of Cost or Market
Item by Item
Accessories
Item 620
Item 621
Total Accessories
Women CEO
Item 726
Item 727
Total Women CEO
Totals
Ending inventory valuation