Blue Company follows the practice of pricing its inventory at the lower of cost or market, on an individual item basis

 Blue Company follows the practice of pricing its inventory at the lower of cost or market, on an individual item basis

 

Working:

 

Note:

The market vale is the mid value of Cost to replace, NRV, & NRV less normal profit.

3.66, 5.06, 3.53, the mid value is 3.66.

Example video:

 

Thanks