E7-10 Reporting Inventory at Lower of Cost or Market

Peterson Furniture Designs is preparing the annual financial statements dated December 31, 2012 Ending inventory information about the five major items stocked for regular sale follows: Complete the final two columns of the table and then the amount that should reported for the 2012 ending inventory using the LCM rule to each item. Prepare the journal entry that Peterson Furniture Designs would record on December 2012