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

Inventory	Quantity	Cost			NRV
Unit A	15	$	38		$	40
Unit B	23		41			38
Unit C	17		29			33
Unit D	20		15			14

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

Ending Inventory:

b. Prepare the necessary adjusting entry to inventory as a journal entry worksheet. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)