Halicon Ltd. applies the lower of cost or NRV valuation to inventory. The company’s inventory at the end of the year is as follows:

Required:

Determine the amount of any adjustment that is required to inventory under each of the following valuation methods:

1. By individual type of item

2. By class of inventory

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Inventory Classification Class 1: Halicon basic models Halican super models Class 2: Private brand- regular Private brand- deluxe Private brand- super deluxe Per Unit Net Quantity Cost Realizable Value 50 30 120 60 40 $100 $120 150 140 90 100 130 140 200 150