John Deere & Co$.$ makes tractor and agricultural products and parts. Two of its most

popular lawn and garden tractors are Model E$100-$E$400.$ At December $31,$ data regarding

replacement parts for these models is below:

Units Cost per Unit Net Realizable Value per Unit

Steering Wheel

Model E$100$

Model E$200$

$5$

$$170$

$$158$

$145$

$152$

Brake Pedals

Model E$300$

$12$

$125$

$114$

Model E$400$

$10$

$120$

$135$

Instructions:

What amount should be reported on the balance sheet, assuming the lower$-$of$-$cost$-$or$-$net

realizable value rule is applied?

What is the adjusting journal entry, if any, that is required?