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

Quantity Unit Cost Net Realizable Value

Printer Cartridges

Item $11956$ $ $22\mathrm{.}00$ $ $22\mathrm{.}50$

Item $1206621\mathrm{.}0019\mathrm{.}50$

Item $1219626\mathrm{.}0025\mathrm{.}00$

Fax Machines

Item $2101889\mathrm{.}0092\mathrm{.}00$

Item $21113195\mathrm{.}00189\mathrm{.}00$

Item $21212228\mathrm{.}00213\mathrm{.}00$

Required:

$1.$ & $2.$ Determine the total amount to be reported as the inventory valuation at cost or net realizable value, whichever is lower, under lower of cost or net realizable value for each item separately and lower of total cost or total realizable value.

$3.$ Determine the total amount to be reported as the inventory valuation at cost or net realizable value, whichever is lower, under lower of total cost or total net realizable value by group.

Analyze:

Which valuation method will yield the highest net income?