At 12/31/20, the end ofOrioleCompany's first year of business, inventory was $6,800and $5,200at cost and at market, respectively.

Following is data relative to the 12/31/21 inventory of Jenner:

Item Original Cost Per Unit ReplacementCost

A $0.75 $0.40

B 0.45 0.40

C 0.60 0.65

D 0.80 0.70

E 0.90 0.85

Selling price is $1.00/unit for all items. Disposal costs amount to10% of selling price and a "normal" profit is20% of selling price. There are1,400units ofeach itemin the 12/31/21 inventory.

Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assumingOrioleuses a contra account for its balance sheet

Prepare the entries necessary at 12/31/21 based on the data above.(Credit account titles are automatically indented when the amount is entered.Do not indent manually.)

How are inventory losses disclosed on the income statement?

Inventory losses can be disclosed separately below ______________________ or they can be shown as part of ___________________