Chapter 6 Inventories and Cost of Sales Analysis Component 5. If the company's manager earns a bonus based on a percent of gross profit, which method of inventory costing will the manager likely prefer? A physical inventory of Office Deals taken at December 31 reveals the following. He sat e treet Format Tods Data Accounting wedow 1000) v Units Per Unit P Cost NRV 436 295 587 321 $261 227 49 93 $305 256 43 82 Item Office furniture 4 Desks 5. Credenzas 6 Chairs 7 Bookshelves 8 Filing cabinets 9 Two-drawer 10 Four-drawer Lateral 12 Office equipment 13 Fax machines 14 Copiers 15 Telephones 16 KREM Sheetha Sheet 214 398 175 81 135 104 70 122 118 168 317 125 200 288 117 Required 1. Compute the lower of cost and net realizable value for the inventory applied separately to each item. 2. If the NRV amount is less than the recorded cost of the inventory, then record the lower of cost and NRV adjustment to the Merchandise Inventory account. show the following. The company recently discovered that in Chapter 6 Inventories and Cost of Sales Analysis Component 5. If the company's manager earns a bonus based on a percent of gross profit, which method of inventory costing will the manager likely prefer? A physical inventory of Office Deals taken at December 31 reveals the following. He sat e treet Format Tods Data Accounting wedow 1000) v Units Per Unit P Cost NRV 436 295 587 321 $261 227 49 93 $305 256 43 82 Item Office furniture 4 Desks 5. Credenzas 6 Chairs 7 Bookshelves 8 Filing cabinets 9 Two-drawer 10 Four-drawer Lateral 12 Office equipment 13 Fax machines 14 Copiers 15 Telephones 16 KREM Sheetha Sheet 214 398 175 81 135 104 70 122 118 168 317 125 200 288 117 Required 1. Compute the lower of cost and net realizable value for the inventory applied separately to each item. 2. If the NRV amount is less than the recorded cost of the inventory, then record the lower of cost and NRV adjustment to the Merchandise Inventory account. show the following. The company recently discovered that in