This data is for selected inventory items at Deluxe Supply Company:

INSTRUCTIONS
Determine the amount to be reported as the inventory valuation at cost or net realizable value, whichever is lower, under each of these methods:
1. Lower of cost or net realizable value for each item separately.
2. Lower of total cost or total net realizable value.
3. Lower of total cost or total net realizable value by group.
Analyze: Which valuation method will yield the highest net income?

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Net Realizable Value Quantity Unit Cost Printer Cartridges $ 36.00 $ 36.50 Item 119 140 160 Item 120 29.75 26.50 Item 121 220 33.00 28.50 Fax Machines Item 210 50 96.00 99.00 Item 211 40 202.00 196.00 Item 212 38 235.00 220.00