Crane Company applied FIFO to its inventory and got the following results for its ending inventory. Cameras   100 units at a cost per unit of $60 Blu-ray players   150 units at a cost per unit of $70 iPods   120 units at a cost per unit of $80 The net realizable value at year-end was cameras $70, Blu-ray players $65, and iPods $75. Determine the amount of ending inventory at lower-of-cost-or-net realizable value. Ending inventory

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.