Brooks Company carries three inventory items.

The following information pertains to the ending inventory:

Required
a. Determine the ending inventory that Brooks will report on the balance sheet, assuming that it applies the lower-of-cost-or-market rule to individual inventory items.
b. Prepare the necessary journal entry, assuming the decline in value was immaterial.

Transcribed Image Text:

Unit Unit: Cost Item utity Market Value 120 170 110 $60 80 30 $55 75 40