Answer:
This question requires volume of output for each item of inventory that need to be valued,hence I have picked for you the price applicable to each in arriving at total value.
Explanation:
The Net Realizable Value implies the amount that could be reasonably derived from the sale of an asset after having deducted the costs of disposal of such asset.
You would notice that replacement cost is to be applied to all inventories as it is lowest of all.
International best practice requires that inventory be valued at lower of cost and net realizable value.
But your question stipulated that we adopt the lower of cost or market approach.In other words ,replacement cost and NRV are market facing while the original cost item relates to cost approach to valuing inventories.
Please find in the attached excel file the values and the ones chosen for final inventory valuation color coded in yellow.
