It is December 31, the end of the year, and the controller of Reed Corporation is applying the lower-of-cost-or-market (LCM) rule to inventories. Before any year-end adjustment, Reed reports the following data:

Reed determines that the current replacement cost of ending inventory is $45,000. Show what Reed should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears.

IL IS December JT, NU UI ile yeal, allu le CULL UNEI UI Reeu Cu PulaLUIT IS apply ...... $ 400,000 Cost of goods sold ....... Historical cost of ending inventory, as determined by a physical count . 66,000 Reed determines that the current replacement cost of ending inventory is $45,000. Shox