E7-11 Reporting Inventory at Lower of Cost or Market/Net Realizable Value [LO 7-4]

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[The following information applies to the questions displayed below.] Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows:

E7-11 Part 1

Required:

1-a. Complete the table column Write-Down per Item and then sum the final column.

1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item.

Item	Unit Cost (FIFO)	NRV per Item	Write-down per Item	Quantity on Hand	Total Write-down
Alligator Armoires	$50	$46		95
Bear Bureaus	57	57		65
Cougar Credenzas	46	49		90
Dingo Cribs	41	41		60
Elephant Dressers	45	41		75