Determine the Value of Inventory Using the 'Lower of Cost

question 21

Multiple Choice

Determine the value of inventory using the 'lower of cost or net realisable value' rule.
$\begin{array}{cccc} & \text { Number } & \text { Cost Each } & \text { Net realisable value each } \\\text { Item LA } & 15 & \$ 20 & \$ 35 \\\text { tem FA } & 3 & \$ 25 & \$ 38 \\\text { tem GA } & 1 & \$ 18 & \$ 10\end{array}$

• A)$393
• B)$385
• C)$649
• D)$657