A home improvement store, like Lowe's, carries the following items: Inventory Items Hammers Quantity 100 Unit Cost Unit NRV $7.30 $7.80 Saws 50 10.30 9.30 Screwdrivers 130 2.30 2.90 Drills 40 25.30 22.60 One-gallon paint cans Paintbrushes 160 5.80 5.30 180 6.30 6.80 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.