Reference no: EM132745808

Never Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCNRV) basis in valuing inventories:

Product                Cost                         NRV

A                      $171,000           $180,000

B                        120,000               114,000

C                           240,000              243,000

Problem 1: If Never applies the LCNRV basis, the value of the inventory reported on the balance sheet would be

Option 1: $531,000.

Option 2: $543,000.

Option 3: $537,000.

Option 4: $525,000.