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At the end of the year, Randys Parts Co. had the following items in inventory: Item Quantity Unit Cost Unit Market Value P1 63 $

At the end of the year, Randys Parts Co. had the following items in inventory:

Item Quantity Unit Cost Unit Market Value
P1 63 $ 86 $ 88
P2 34 62 72
P3 82 137 125
P4 41 59 67

a. Determine the amount of ending inventory using the lower-of-cost-or-market rule applied to each individual inventory item.

b. Provide the general journal entry necessary to write down the inventory based on Requirement a. Assume that Randys Parts Co. uses the perpetual inventory system.

c. Determine the amount of ending inventory, assuming that the lower-of-cost-or-market rule is applied to the total inventory in aggregate.

d. Provide the general journal entry necessary to write down the inventory based on Requirement c. Assume that Randys Parts Co. uses the perpetual inventory system

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