E7-12 LO7-4 Reporting Inventory at Lower of Cost or Net Realizable Value 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 Unit Cost When Net Realizable Value Item (Market) at Year-End on Hand Acquired (FIFO) $15 $12 50 40 80 30 48 10 52 70 25 30 D 5 350 10 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. (Hint: Set up columns for Item, Quantity, Total Cost, Total Net Realizable Value, and Lower of Cost or NRV.)