Framing dale Factories, Inc. manufactures low- cost furniture. The company produces three sizes of closets: four foot (S), six foot (M), and eight foot (L). Framing dale provided the following data:

Required
a. Determine the inventory carrying value with the lower- of- cost- or- market rule using the individual- items basis.
b. Prepare the journal entry to record any write- down required using the indirect method.
c. Determine the inventory carrying value with the lower- of- cost- or- market rule using the total inventory basis.
d. Prepare the journal entry to record any write- down using the direct method.

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Six Foot (M) $160 94 Description Selling price FIFO cost Current replacement cost Disposal cost Normal profit 1% of selling price) Units in ending inventory Four Foot (S) $120 84 72 18 20% 1,000 Eight Foot (L) $200 150 125 20 30% 900 25 25% 2,100