Per Unit Inventory Classification

Quantity Cost NRV

Stock A 17 $100 $80

Stock B 22 81 66

Stock C 20 104 122

Hard drives

Stock X 30 206 188

Stock Y 50 183 209

CD burners

Stock D 82 78 60

Stock E211 127 150

Required: 1-a. Determine the valuation of the above inventory at cost by individual items.

	Cost
Keyboards
Stock A
Stock B
Stock C
Hard drives
Stock X
Stock Y
CD Burners
Stock D
Stock E
Total cost

1-b. Determine the valuation of the above inventory at cost assuming application of lower-of-cost-or-NRV by classifications.

	Lower of cost or NRV applied by
	Items	Classification
Keyboards
Stock A
Stock B
Stock C
Hard drives
Stock X
Stock Y
CD Burners
Stock D
Stock E
Lower of cost or NRV

2. Prepare the entry to record the writedown, if any, to reduce ending inventory to lower of cost or NRV. Assume periodic inventory and the allowance method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a.Record the allowance to reduce inventory to LC/NRV by individual items.

b.Record the allowance to reduce inventory to LC/NRV by class of inventory.