Problem:
Basic inventory data for Grau Company as of June 30 are presented below: Item Quantity Unit Cost Unit NRV Sporting Goods: Baseballs 20 $ 72 $ 64 Footballs 40 $220 $232 Basketballs 10 $ 80 $100 Electronics: CD Players 20 $328 $300 DVD Players 30 $232 $220 Assume Grau Company applies the lower-of-cost-or-net realizable value method for the inventory by major category. Determine the amount of inventory adjustment required at the end of the year. Select one: A. $(920) B. $520 C. $1,440 D. $(400)