Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below:

Current	Normal
Replacement	Selling	Cost of	Profit
Year	Cost	Cost	Price	Completion	Margin
2020	$10,000	$11,500	$12,000	$1,000	$1,100
2021	15,000	13,000	14,000	1,500	1,250
2022	20,000	18,600	24,000	2,200	2,900

Required:

a.	Determine the value of the inventory for each year using the lower of cost or market rule.
b.	Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using:
	(1)	the direct method
	(2)	the allowance method