ABC Co$.$ uses the LCNRV method, on an individual items basis, in pricing its

inventory items, The inventory for December $31$ is below.

Item Item

#$1$ #$2$

Estimated selling price $4036$

Cost $2526$

Cost to complete $1010$

Selling costs $36$

Using LCNRV$,$ determine the proper unit value for balance sheet reporting

purposes on December $31,$ for each of the inventory items above.

Prepare the journal entry to adjust the inventory to LCNRV using the individual items

approach.