Macroland and Microworld are two countries that produce shrimp and tomatoes. In Macroland each worker can produce either 23.16 pounds of shrimp or 15.14 pounds of tomatoes per day. In Microworld each worker can produce either 29.38 pounds of shrimp or 7.06 pounds of tomatoes per day. Suppose both countries have constant opportunity cost of production and decide to specialize and exchange. The country that specializes in tomatoes is willing to sell 50 pounds of tomatoes for at least pounds of shrimp.

Example1 lcnrv: ted company uses the lower of cost or nrv method in valuing its inventory items. the inventory at december 31, 2017, consists of products a, b and c, each having 1,000 units. relevant unit data for these products appear below: item a item b item c cost $ 80 $80 $80 estimated selling price 180 100 90 estimated selling cost 30 30 30 required: using the lower of cost or net realizable value rule, determine the proper value of inventory for balance sheet reporting purposes at december 31, 2017. prepare any necessary journal entry. apply the lower of cost or nrv method: • on an individual inventory basis; • on a group basis; • on a total inventory basis. solution worksheet: inventory (on an individual basis): inventory value item nrv cost lc- item a item b item c total inventory (on a group basis): inventory value item nrv cost lc- group 1 (item a and b) group 2 (item c) total inventory (on an aggregate inventory basis): inventory value item nrv cost lc- total inv