1. At year-end 20X8, Ancho Canned Chile has 8,000 units on hand at a weighted-average cost of $13 per item. Sales for the year were at $16 per item. Resellers cost Ancho an average $4 per unit.

a. What is Anchos ending inventory applying LCNRV by item?

b. If the loss is not significant enough to warrant disclosure on the income statement, what year-end journal entry does Ancho record?

c. If the market value of the inventory increases in the following year, can Ancho recognize the recovery?