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 Unit Cost When Value Quantity Acquired (Market) on Hand (FIFO) at Year-End $16 $19 44 34 25 52 Item 65 95 85 365 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 Item Quantity Lower Total Net of Realizable Cost Value NRV Cost or 65 95 25 85 365 Total