Calculate inventory using lower of cost and net realizable value $($ LO$6-6)$

E$6-14$ A company like Golf USA that sells golf$-$related inventory typically will have inventory items such as golf clothing and golf

equipment. As technology advances the design and performance of the next generation of drivers, the older models become less

marketable and therefore decline in value. Suppose that in the current year, Ping $($a manufacturer of golf clubs$)$ introduces the

MegaDriver II$,$ the new and improved version of the MegaDriver. Below are year$-$end amounts related to Golf USA's inventory.

Required:

Calculate the total recorded cost of ending inventory before any adjustments.

Calculate ending inventory using the lower of cost and net realizable value.

Record any necessary adjusting entry to inventory.

Determine the impact of the adjusting entry in the financial statements.