Byron Company has five products in its inventory and uses the FIFO cost flow assumption. 

Specific data for each product are as follows:

Required:
1. What is the correct inventory value, assuming the LCNRV rule is applied to each item of inventory?
2. What is the correct inventory value, assuming the LCNRV rule is applied to the total of inventory?
3. Next Level Comment on any differences that result from applying the LCNRV rule to individual items compared to the total of inventory.

Transcribed Image Text:

Estimated Cost of Disposal Product Selling Price Cost $ 90,000 $150,000 120,000 70,000 115,000 110,000 $20,000 15,000 5,000 5,000 8,000 110,000 60,000 100,000 105,000 D