Exodus corp is preparing its dec 31 2017 year end financial statement the following information is available from exodus inventory records for determining the lower of cost and net realizable value of inventory as of dec 31 2017.

product	quantity	Historical cost	Sales price
a	2000	39	42
b	5000	15	20
c	3000	32	34
d	1000	22	23

Selling costs are estimated as 10% of the sales price. Exodus has two categories of inventory,

Category one consists of product a and b, category two consists of product c and d

Required

Calculate the value of inventory that exodus should report on its dec 31 2018 balance sheet assuming it applies to the lower of cost and nrv rule on a categorical basis

Make the necessary journal entry for the above requirement