A home improvement store, like Lowe$$s$,$ carries the following items:

Inventory Items Quantity Unit Cost Unit NRV

Hammers $110$ $$6\mathrm{.}10$ $$6\mathrm{.}60$

Saws $609\mathrm{.}108\mathrm{.}10$

Screwdrivers $1401\mathrm{.}101\mathrm{.}70$

Drills $5024\mathrm{.}1020\mathrm{.}20$

One$-$gallon paint cans $1704\mathrm{.}604\mathrm{.}10$

Paintbrushes $1905\mathrm{.}105\mathrm{.}60$

Required:

$1.$ Compute the total cost of inventory.

$2.$ Determine whether each inventory item would be reported at cost or net realizable value, and then place that unit amount in the $$Lower of Cost and NRV per unit$$ column. Multiply the quantity of each inventory item by the appropriate cost or NRV unit amount and place the total in the $$Total$$ column.

$3.$ Record any necessary adjusting entry to write down inventory from cost to net realizable value.

$4.$ Determine the financial statement effects of using lower of cost and net realizable value to report inventory.