Data Visualization 9-1 Lower of cost and net realizable value Furniture Fashions sells high-end furniture (dressers, chairs, sofas, and tables). Due to vacillating customer tastes and fierce competition, attainable selling prices have been erratic, particularly for certain types of furniture. Based on its experience, management projects next year's sales prices of year-end inventory using the trend in monthly sales prices during the current year. Presented below are those trends in sales prices for each of its four types of inventory, along with next year's projected sales price. Also presented are the number of units of ending inventory and the average cost of each of those units. Average Monthly Sales Prices and Projections $3,000 | $2,676 $2,500 $2,000 $1,500 $1,000 $500 $1,177 46870 $658 April May June July December Projection January February March Dressers Chairs August September October November Sofas Tables Units of Ending Inventory Average Unit Cost of Ending Inventory 75 $1,670 $1,540 40 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $810 20 $320 Dressers Chairs Sofas Tables Dressers Chairs Sofas Tables Click here to open the graph(s) in a new tab. Required: 1. Which of the company's product lines has seen the greatest growth in sales prices over the current year? 2. Based on the trend lines provided, for which product line does management project to sell below its average unit cost in the following year (Hint: Compare projected sales prices to the bar chart showing average unit cost)? 3. Prepare the year-end adjusting entry to record inventory at the lower of cost or net realizable value (Hint: Be sure to account for the number of units of ending inventory in your calculation)