E7-12 (Algo) Reporting Inventory at Lower of Cost or Net Realizable Value L07-4 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 Net Realizable Quantity Unit Cost When Value (Market) Item Acquired (FIFO) at Year-End $ 16 $ 13 B D E on Hand 51 81 11 71 351 31 49 26 11 41 53 31 6 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. 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 Lower of Cost or NRV Total Net Item Quantity Total Cost Realizable Value A 51 B 81 11 D 71 351 Total $ 0 $ 0 $ 0