Cost Net Realizable Inventory Quantity per Unit Value per Unit Paper Stock X Stock Y 2.000 $300 $330 600 250 230 Ink Stock D 200 70 65 Stock E 100 52 Toner Stock A BD 75 70 Stock Stock C 40 70 95 100 110 Required a. Determine the valuation of inventory at cost and at the lower of cost or net realizable value assuming application by (1) individual items, (2) classifications, and (3) total inventory. Inventory at lower of cast or net realizable value: (1) Individual items $ 786,300 * (2) Classifications $ 766,000 x (3) Total inventory $ 766,000 b. Prepare the journal entry to apply the lower of cost or net realizable value rule to inventory for each of the applications above, assuming that the company adjusts inventory indirectly through an allowance account and adjusts equity through a separate loss account. Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Ref. Account Name (1) Dr. Cr. 0 0 0 x To reduce inventory to the lower of cost or net realizable velve-Individual (2) 0 0x 0 0x To reduce inventory to the lower of cost or net realizable value-Classifications. (3) 0 0 0 0x To reduce inventory to the lower of cost or not realizable value-Total