audit of inventories

Yupangco Music Company sells musical instruments. In your audit of the company's financial statements for the year ended December 31, 201B, you have gathered the following data concerning inventory. On December 31, 201A, the balance in Yupangco's Inventory account was P502,000, and the Allowance for Inventory Write-down had a balance of P32,000. The relevant inventory cost and market data on December 31, 201B are summarized in the schedule below: Cost Replacement Sales Price NRV Normal Profit Cost Guitars P89,000 P86,000 P91,500 P87,000 P6,400 Ukuleles 94,000 92,000 93,000 85,000 7,440 Keyboards 125,000 135,000 129,000 111,000 11,610 Violins 194,000 114,000 205,000 197,000 20,500 TOTAL P502,000 P427,000 P518,500 P480,000 P45,950 Required: 1. What is the total balance of Inventory using the LCNRV method on an item by item basis? 2. What is the proper balance in the Allowance for Inventory Write-down on December 31, 201B