Required:

Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item$-$by$-$item basis.

What will be the effect of the write$-$down of inventory to lower of cost or net realizable value on cost of goods sold for the year ended December $31,$ current year?

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Required $1$

Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item$-$by$-$item basis.

$\backslash$table$[[$Item$,$Quantity,Total Cost,$\backslash$table$[[$Total Net$],[$Realizable$],[$Value$]],\backslash$table$[[$Lower of$],[$Cost or NRV$]]],[$A$,38,,,],[$B$,73,,,],[$C$,53,,,],[$D$,28,,,],[,$Total,,,$]]$