Chapter 7 Problem Set Question 10 (of 125 > + | save & Exit | | Submit 10. value: 0.83 points E7-13 Repltting Inventory at Lower of Cost or Market Lo7-4 Parson Company was formed on January 1 of the current year and is preparing the annual financial statements dated December 31, current year Ending items stocked for regular sale follows: inventory information about the four major ENDING INVENTORY, CURRENT YEAR Net Realizable Value (Market) Quantity Unit Cost When Itern on Hand Acquired (FIFO) at Year-End $20 40 B. 35 15 27 Required 1. Compute the valuation that should be used for the current year ending inventory using the LCM rule applied on an item-by-item basis. 30 35 2. What will be the effect of the write-down of inventory to lower of cost or market on cost of goods sold for the year ended December 31, current year? Hints References eBook & Resources Hint #1