What is the accrual ratio of inventory depreciation reserve?

According to the lower of actual cost and net realizable value. For inventory goods, the net realizable value is the sales price minus the sales expenses. The determination of sales price can be divided into two situations: the price agreed in the signed contract and the price not signed. If a contract has been signed, the sales price is the price agreed in the contract, regardless of the market price and contract price. If no contract is signed, the market price shall be the sales price. For the part exceeding the contract quantity, the market price shall be the sales price. Only when the net realizable value is lower than the cost, will the inventory depreciation reserve be accrued. The determination of net realizable value of raw materials is more complicated than that of inventory.