This data is for selected inventory items at Kimble 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?

Printer Cartridges Item 119 Item 120 Item 121 Fax Machines Item 210 Item 211 Item 212 Quantity 70 80 110 25 20 19 Unit Cost $ 37.00 30.75 34.00 97.00 203.00 236.00 Net Realizable Value 37.50 27.50 29.50 100.00 197.00 $221.00