Lower of Cost and Net Realizable Value (NRV)
Determine the Unit

Lower of cost and net realizable value (NRV)
Determine the unit value that should be used for inventory costing, using the "lower of cost and NRV" rule.
$$\begin{array} { l l l l l l l } & \mathbf { A } & \mathrm { B } & \mathrm { C } & \mathbf { D } & \mathbf { E } &\mathbf { F } \\\text { Cost } & \mathbf { \$ 2 . 4 0 } & \mathbf { \$ 2 . 4 0 } & \mathbf { \$ 2 . 3 0 } & \mathbf { \$ 2 . 5 4 } & \mathbf { \$ 2 . 4 4 } & \mathbf { \$ 2 . 6 5 } \\\text { Replacement cost } & 2.20 & 2.60 & 2.20 & 2.50 & 2.42 & 2.36 \\\text { Net realizbble } \text { value } & 2.50 & 2.50 & 2.25 & 2.45 & 2.50 & 2.50\end{array}$$