At 12/31/16, the end of Hamilton Company's first year of business, inventory was $170,000 and $165,000 at cost and at net realizable value, respectively, on a per-unit basis.Assume that Hamilton uses the FIFO inventory costing assumption.

The following data relates to the 12/31/17 inventory of Hamilton:

Product Cost

Replacement Cost

SellingPrice

Disposal Costs

Normal Profit on Sales A 35,000 37,000 58,5003,00035% B 47,000 38,000 59,0005,57020% C 90,100 88,000 139,8007,76030% D 73,500 75,000 113,9006,25030% E 55,000 75,000 99,5004,67540%

Required: a. Prepare the entry at 12/31/16 necessary to implement the lower of cost or NRV procedure on a per-unit basis, assuming Hamilton uses a contra account (Allowance) to adjust its inventory balance. b. Determine the lower of cost or NRV for the inventory at 12/31/17 and prepare the entries necessary at 12/31/17 based your computations. c. Assume, instead, that Hamilton uses the LIFO inventory costing assumption.Prepare the necessary entries for 12/31/17.