1. Determine the lower of cost and net realizable value of the ending inventory assuming Wildhorse Co. applies LCNRV on individual items.

2. Prepare the journal entry required, if any, to record the adjustment from cost to net realiazable value.

Wildhorse Couses 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 Wildhorse Cols year end, December 31: Net Realizable Value per Unit Units Unit Cost Clothing 91 $8 $6 Jewellery 76 20 27 Greeting Cards 47 4 5 Stuffed toys 60 12 38 Determine the lower of cost and net realizable value of the ending inventory assuming Wildhorse Copolies LCNRV on individual Items Lower of cost and not realizable value tud