Exercise $6-13($Algo$)$ Calculate inventory using lower of cost and net realizable value $($LO$6-6)$

Rustic Furnishings reports inventory using the lower of cost and net realizable value $($NRV$).$ Below is information related to its year$-$end inventory.

Inventory Quantity Unit Cost Unit NRV

Furniture $270$ $$92$ $$107$

Electronics $57470410$

Required:

$1.$ Calculate the total recorded cost of ending inventory before any adjustments.

$2.$ Calculate ending inventory using the lower of cost and net realizable value.

$3.$ Record any necessary adjusting entry for inventory.

$4.$ Determine the impact of the adjusting entry in the financial statements.