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

	Quantity			Unit Cost					Net Realizable Value
Printer Cartridges
Item 119		48			$	18.50			$	18.00
Item 120		58				17.50				18.50
Item 121		88				24.00				24.00
Fax Machines
Item 210		26				90.00				87.00
Item 211		21				187.00				193.00
Item 212		20				211.00				226.00

Required:

1. 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?

Description	Quantity	Unit Cost	Market Value	Total Cost	Total Market	Lower of Cost or Market
Printer Cartridges
Item 119				$0.00	$0.00
Item 120				0.00	0.00
Item 121				0.00	0.00
Total cartridges				$0.00	$0.00	$0.00
Fax Machines
Item 210				$0.00	$0.00
Item 211				0.00	0.00
Item 212				0.00	0.00
Total Fax Machines				$0.00	$0.00	$0.00
Total inventory				$0.00	$0.00	$0.00
Lower of cost or market by individual items
Lower of total cost or total market

Lower of total cost or total market by groups
Printer Cartridges
Fax Machines
Total inventory by groups	$0.00

valuation method will yield the highest net income?