CHAPTER 9 3) Norman Bernhardt, Inc. manufactures and sells four products, the inventories of which are priced at cost or market, whichever is lower. A normal profit margin rate of maintained on each of the four products. 32% is usually 71, The following information was compiled as of December 31, 20x8. Estimated Original Cost Cost to Product -Replace Cost to Dspese Selling Price $39.00 31.00 127.00 73.00 78.00 58.00 162.00 144.00 151.00 11.00 84.00 64.00 86.00 16.00 35.00 * Normal margin is 32% of selling price. Assume 1,200 units of products A and B and 1,500 units of products Cand D.J 1) Use a computer spreadsheet (EXCEL) to prepare a schedule containing unit values (including floor" and "ceiling") for determining the lower-of-cost-or-market on an Individual-product basls. The last column of the schedule should contain, for each product, the unit value for the purpose of inventory valuation resulting from the application of the lower-of-cost-or-market 2) Prepare a separate schedule to disclose the total inventory values at cost and lower-of-cost-or- market REQUIRED: Ibl Journal Entry Prepare the journal entry to record the lower-of-cost-or-market for Norman Bernhardt, Inc. Assume that Bernhardt, Inc, uses a perpetual inventory system.] REQUIRED: Icl Explanation Prepare a brief memorandum to explain why expected selling prices are important in the application of the lower-of-cost-or-market rule