Bora Company uses the LCNRV method to evaluate inventory for financial reporting purposes. Information related to inventory at December 31, 2020 appears below.

	Item A	Item B	Item C
Quantity	50 units	40 units	100 units
Estimated Selling Price per unit	$70	$35	$30
Purchasing price per unit	40	50	30
Freight-in (transportation) cost per unit	5	5	5
Cost to complete per unit	9	5	7
Cost to sell per unit	6	3	3

Required

a) Determine the correct value to be reported for inventory on the Financial Position Statement applying LCNRV for each item individually. Prepare the necessary journal entry if needed using the loss method. (5+5 = 10 points)

	Item A	Item B	Item C	Total inventory
LCNRV

JOURNAL ENTRY
DATE	ACCOUNT TITLES	DEBIT	CREDIT

b) Determine the correct value to be reported for inventory on the Financial Position Statement applying LCNRV for inventory in total. Prepare the necessary journal entry if needed using the loss method. (5+5 = 10 points)

	Total inventory
LCNRV

JOURNAL ENTRY
DATE	ACCOUNT TITLES	DEBIT	CREDIT

c) What should the company do if during 2021 total NRV for inventory rises above total original cost? (10 points)