Crane Company uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Crane Companys year end, December 31:

		Units			Unit Cost			Net Realizable Value per Unit
Clothing		85			$6			$5
Jewellery		72			20			26
Greeting cards		44			3			4
Stuffed toys		58			13			38

Determine the lower of cost and net realizable value of the ending inventory assuming Crane Company applies LCNRV on individual items.

Prepare the journal entry required, if any, to record the adjustment from cost to net realizable value.