Tech Computing Store 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 Tech Computing's year end, December 31:
_______________________Units Unit Cost Net Realizable Value
Laptop computers...............95..................$710............................$680
Monitors..........................72.....................275.............................210
External hard drives............47......................55..............................80
Tablets............................56.....................300.............................390
Instructions
(a) Determine the lower of cost and net realizable value of the ending inventory.
(b) Prepare the journal entry required, if any, to record the adjustment from cost to net realizable value.