AP-8A LO3 MJ Corporation sells three categories of products: shirts, socks and pants. The following information was available at the year end of December 31, 2018. Pants Socks Shirts $ per unit $ per unit 13 $ per unit 10 15 Original Cost 14 12 Estimated Selling Price (Net Realizable Value) Inventory: Number of Units Held 15 240 380 300 Required a) Calculate the value of inventory (apply the LCNRV at the category level). Socks Pants Shirts Inventory: Units Held Lower of Cost and Market Value of Inventory Inventory Valuation b) Using the results from a), prepare the journal entry to adjust merchandise inventory to LCNRV (at category Chapter 8 level). Account Title and Explanation Date Debit Credit AP-9A LO 4 Tanner Radio Company has an inventory turnover of 4.5, while its competitor, Deej Radio, has an inventory turnover ratio of 1.0. Required a) What do these ratios mean for each company? Which company has the better ratio? b) Calculate the days' sales in inventory for each company and interpret their meaning