FILL IN THE TABLE

At 12/31/21, the end of Cushing Company's first year of business, inventory was $6,800 and $6,500 at cost and at net realizable value, respectively. The following data relates to the 12/31/22 inventory of Cushing: \begin{tabular}{|l|r|} \hline & Original Cost \\ \hline Item & per Unit \\ \hline A & $1.10 \\ \hline B & 0.90 \\ \hline C & 1.80 \\ \hline D & 0.70 \\ \hline E & 1.90 \\ \hline \end{tabular} Selling price is $2.00 per unit for all items. Disposal costs amount to 15% of selling price, and a normal profit is 40% of selling price. There are 1,000 units of each item in the 12/31/22 inventory a. Prepare the entry at 12/31/21 necessary to implement the lower of cost or NRV procedure assuming Cushing uses a contra account (Allowance) for its balance. b. Determine the lower of cost or NRV for the inventory at 12/31/22. c. Prepare the entries necessary at 12/31/22 based your computations. d. How are inventory losses disclosed on the income statement for 2022? e. Assume, instead, that Cushing uses the LIFO inventory costing assumption. What would be different about your response to the questions above? Required A Allowance for inventory loss Inventory 300 Required B \begin{tabular}{|l|r|r|r|r|} \hline Item & Original Cost Selling Price & Disposal Costs Normal Profi NRV & Lower cost or NRV \\ \hline Item A & $1.10 & 2 & & \\ \hline Item B & 0.90 & 2 & & \\ \hline Item C & 1.80 & 2 & & \\ \hline Item D & 0.70 & 2 & & \\ \hline Item E & 1.90 & 2 & & \\ \hline \end{tabular}