a. Jeri Company sells three different categories of tools (small, medium and large). The cost and net realizable value of its inventory of tools are as follows.

Determine the value of the company's inventory under the lower-of-cost-or-net realizable value approach.

b. Early in 2025, Fedor Company switched to a just-in-time inventory system. Its sales and inventory amounts for 2024 and 2025 are shown below.

Determine the inventory turnover and days in inventory for 2024 and 2025. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales across the 2 years.

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Small Medium Large Cost $ 64,000 290,000 152,000 Net Realizable Value $ 61,000 260,000 167,000