Exercise 5-10B Lower-of-cost-or-market rule: perpetual system The following information pertains to James Hardware's ending inventory for the current year. Item Quantity Unit Cost Unit Market Value MNOP 200 $10 $ 8 100 12 40 8 30 5 10 8600 10 9 Required a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to (1) each individual inventory item and (2) the inventory in aggregate. b. Prepare any necessary adjustment, assuming the decline in value is immaterial, using the (1) individual method and (2) aggregate method. James Hardware uses the perpetual inventory system. EXERCISE 5-10B a. James Hardware a. b. C. d. e. f. g. Ind. Item Item Quantity Cost Per Unit Mkt. Val. Total Total Lower per Unit Cost Market Cost/Mkt (bx c) (b x d) (e or f) 200 $10 $8 $2,000 $1,600 $1,600 MNOP $3,670 $3,260 $3,070 (1) Ending inventory using the individual item method: $ (2) Ending inventory using the aggregate method: $ b. 1. Adjustment using the individual item method: $ 2. Adjustment using the aggregate method: $