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A company reports inventory using the lower of cost and net realizable value. See the following information related to its year-end inventory: Inventory Quantity Cost

A company reports inventory using the lower of cost and net realizable value. See the following information related to its year-end inventory:

Inventory Quantity Cost NRV
Item A 150 $ 29 $ 34
Item B 50 34 24

a. Calculate ending inventory for the company under the lower of cost and net realizable value.

b. Record the necessary adjusting entry to inventory.

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