Peterson Furniture Designs is preparing the annual financial statements dated December 31, 2012. Ending inventory information about the five major items stocked for regular sale follows:

Required:
1. Complete the final two columns of the table and then compute the amount that should be reported for the 2012 ending inventory using the LCM rule applied to each item.
2. Prepare the journal entry that Peterson Furniture Designs would record on December 31, 2012.

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Ending Inventory, 2012 Quantity on Hand 50 75 10 30 Unit Cost When Acquired (FIFO) $30 40 50 30 Market Value at Year-End $24 40 52 30 12 LCM per Item Total LCM Alligator Armoires Bear Bureaus Cougar Beds Dingo Cribs Elephant Dressers