Duncan Company sells lumber. Inventory cost data per 1,000 board feet of lumber for Duncan Company are as follows:

1. By what amount, if any, should each item (considered separately) be written down?
2. Make the appropriate journal entry (or entries):
a. Assuming that each inventory item is considered separately.
b. Assuming that LCM is applied to totalinventory.

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Item Plywood Maple Redwood Quantity on hand. Original cost Current replacement cost.. Net realizable value Net realizable value minus normal profit 16 $450 1,900 $700 $1,600 1,700 550 1,650 650 1,700 1,500 21 23 38 400 350 250 1,850 1,600 600