Chapter 8 Exercise 8.6, pages 37413713 Late in the year, software City began carrying WordCrafter. a new word processing software program. At December 31, Software City 3 perpetual inventory records included the following cost layers' In its inventory of WordCrafter programs. Purchase Date I uanti U nit Cost Total Cost I a) At December 31. Software City takes a physical inventory and finds that all 28 units of WordCrafter are on hand. However, the current replacement cost(wholesale price) of this product is only $250 per unit. Prepare the entries to record: 1. This writedown of the inventory to the lowerofmarket at December 31. ( company policy is to charge LCM adjustments of less than $2,000 to cost of Goods Sold and larger amounts to a separate loss accounts.) 2. The cash sale of 15 WordCrafter programs on January 9. at a retail price of $350 each. Assume that software City uses the FIFO flow assumption. b) Now assume that the current replacement cost of the WordCrafter programs is $405 each. A physical inventory nds only