a. Determine the valuation of inventory at cost and at the lower-of-cost-or-net realizable value assuming application by (a) individual items, (b) classifications, and (c) total inventory. The unit costs of the three categories are significantly different; however, within each category the unit costs are similar.

b. Prepare the entry to record the ending inventory for each approach in part aassuming any inventory holding loss is recognized as a separate loss and reduces inventory through an allowance account.

• Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero).

Valuing Inventory Using Lower-of-Cost-or-Net Realizable Value Printer Inc. discloses the following ending inventory data. Classification Quantity Cost per Unit NRV per Unit Paper Stock X 400 $300 $330 Stock Y 120 250 230 Ink 40 $70 $65 20 55 62 Stock D Stock E Toner Stock A Stock B 16 $75 $70 8 95 80 Stock C 14 100 110 a. Determine the valuation of inventory at cost and at the lower-of-cost-or-net realizable value assuming application by (a) individual items, (b) classifications, and (c) total inventory. The unit costs of the three categories are significantly different; however, within each category the unit costs are similar. 1. Calculate the lower of cost or net realizable value applying the rule to each individual item. $ 2. Calculate the lower of cost or net realizable value applying the rule by inventory category. $ 3. Calculate the lower of cost or net realizable value applying the rule to total inventory. $ b. Prepare the entry to record the ending inventory for each approach in part a assuming any inventory holding loss is recognized as a separate loss and reduces inventory through an allowance account. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name Dr. Ref. 1 Cr. . 2 3