E7-12 (Algo) Reporting Inventory at Lower of Cost or Net Realizable Value LO7-4 H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Quantity ABCDE Item on Hand 65 95 25 85 365 Unit Cost When Acquired (FIFO) $ 16 44 56 34 9 Net Realizable Value (Market) at Year-End $ 19 34 52 29 14 Required: Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by- item basis. Total Net Lower of Cost or Value NRV Item Quantity Total Cost Realizable 65 AB CDE 95 25 85 365 Total $ 0 $ 0 $ 0