3.On 12/31/18, Knight Co. had two different items in inventory. Knight uses the LIFO cost flow assumption. The chart below provides the information collected at the end of the year for determining the reported inventory values for the two items in inventory ($ in millions). Item 1 Item 2 Actual cost $53 $46 Replacement $55 cost Sales Price $76 Additional $12 costs to sell Normal Profit $8 Margin Ceiling Floor Inventory Value 3a. Fill in the table above. Provide ceiling and floor amounts for both inventory items above and determine the appropriate inventory values for these items to be reported on Knight's 2018 balance sheet 3b Provide the adjusting journal entry (if any) at 12/31/18 to properly value the inventory on Knight's 2018 balance sheet. Writedowns of inventory are not unusual for Knight Co.. Date Account Debit Credit 3c. If Knight were a firm that was using FIFO (Instead of LIFO), what would be the inventory values for item 1 and item 2 to be included on the 2018 balance sheet? Item 1 Item 2 Inventory Value 3.On 12/31/18, Knight Co. had two different items in inventory. Knight uses the LIFO cost flow assumption. The chart below provides the information collected at the end of the year for determining the reported inventory values for the two items in inventory ($ in millions). Item 1 Item 2 Actual cost $53 $46 Replacement $55 cost Sales Price $76 Additional $12 costs to sell Normal Profit $8 Margin Ceiling Floor Inventory Value 3a. Fill in the table above. Provide ceiling and floor amounts for both inventory items above and determine the appropriate inventory values for these items to be reported on Knight's 2018 balance sheet 3b Provide the adjusting journal entry (if any) at 12/31/18 to properly value the inventory on Knight's 2018 balance sheet. Writedowns of inventory are not unusual for Knight Co.. Date Account Debit Credit 3c. If Knight were a firm that was using FIFO (Instead of LIFO), what would be the inventory values for item 1 and item 2 to be included on the 2018 balance sheet? Item 1 Item 2 Inventory Value