ARB No. 43, Chapter 4, states that the LCM rule may be applied to individual items, or to groups of items, or to the inventory as a whole.  Which of these approaches gives the most conservative valuation of inventory?  Why?  Complete the following table to aid in this decision.
 
 

Item	Historical Cost	Replacement cost  (market)	Lower of cost or market
SXF235	$30	$26
FVY678	$56	$59
JHT598	$67	$76
ttl-group I
KLM964	$48	$40
WQR798	$55	$58
RTY590	$23	$26
ttl-group II
Totals