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Valley Inc. has compiled the following information concerning items in its inventory at December 31: Item Quantity Cost per Unit Net Realizable Value (NRV)per unit

Valley Inc. has compiled the following information concerning items in its inventory at December 31:

Item

Quantity

Cost per Unit

Net Realizable Value (NRV)per unit

A

100

$45

$50

B

80

160

120

C

50

100

110

Required:

  1. (4 marks) The carrying amount of the total inventory of Valley Inc. using the lower of cost or net realizable value ( LCNRV) rule applied on an item by item basis is:

__________________________________

  1. (2 marks) The loss due to inventory write down to LCNRV is:

_____________________________________

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