Lower of Cost or Net Realizable Value Blue Corporation uses the FIFO cost flow assumption. Presented below is information related to Blue’s inventory: Product 1 Product 2 Product 3 Cost $50 $90 $75 Selling price 75 120 90 Costs of completion 15 30 20 Costs of disposal 4 2 5 a. Determine the net realizable value for each item. Product 1 Product 2 Product 3 NRV $ $ $ b. Determine the inventory value of each item using the lower of cost or net realizable value rule. Product 1 Product 2 Product 3 Carrying Value $ $ $

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position