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A home improvement store, like Lowes, carries the following items: Inventory...

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Accounting

A home improvement store, like Lowes, carries the following items:
Inventory ItemsQuantityUnit CostUnit NRVHammers110$6.40$6.90Saws609.408.40Screwdrivers1401.402.00Drills5024.4020.80One-gallon paint cans1704.904.40Paintbrushes1905.405.90
Required:
1. Compute the total cost of inventory.
2. Determine whether each inventory item would be reported at cost or net realizable value, and then place that unit amount in the Lower of Cost and NRV per unit column. Multiply the quantity of each inventory item by the appropriate cost or NRV unit amount and place the total in the Total column.
3. Record any necessary adjusting entry to write down inventory from cost to net realizable value.
4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory.

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