12-43. Hovington, CPA, knows that while audit objectives relating to inventories may be stated in terms of the assertions as presented in this chapter, they also may be subdivided and stated more specifically. He has chosen to do so and has prepared the second column of the following table. Financial Specific Audit Objective Audit Procedure Statement Assertion 1. The entity has legal title to inventories. 2. Recorded inventory quantities include all products on hand. 3. Inventories are reduced, when appropriate, to replacement cost or net realizable value. 4. Cost of inventories is properly calculated. 5. The major categories of inventories and their basis of valuation are adequately reported in the financial statements. Required:Assume that Hovington's client, a retail department store, does no production. For each specific inventory audit objective listed above, select the most closely related ffinancial statement assertion and the most appropriate audit procedure ffrom the ffollowing