As part of a strategic restructuring, Greyson Company recently assessed its inventory and compared it to its replacement cost. Greyson determined the following information:

INVENTORY COST REPLACEMENT COST

ITEM A $29,000 $25,500

ITEM B $45,600 $46,200

ITEM C $77,000 $79,200

ITEM D $49,300 $47,900

ITEM E $33,000 $32,600

Required:

• At what amount should Greyson report each item? (You can highlight or mark your answers on the chart above).
• At what amount should Greyson report its total inventory?
• Prepare the journal entry to write down the inventory to the appropriate value, if applicable.