LCNRV and LCM

a. As of 12-31-18, Zena Company has four different inventory items on hand. Data on the four items follows:

Item	Quantity on hand	Unit cost	Expected selling price	Estimated disposal costs
C3Z22P3	400	$30	$80	$7
PQ27845	100	$52	$55	$5
ZT15577	250	$27	$40	$0
SF98888	300	$13	$30	$9

Using the lower-of-cost-or-net realizable value approach applied on an individual-item basis, determine if Zena needs to make an entry to write her inventory down. If so, prepare the entry Zena should make.

b. As of 12-31-18, Bartle Company has four different inventory items on hand. Data on the four items follows:

Item	Quantity on hand	Unit cost	Expected selling price	Replacement Cost	Normal gross profit % *	Estimated disposal costs
C3Z22P3	550	$30	$40	$25	40	$2
PQ27845	175	$10	$20	$12	30	$1
ZT15577	250	$17	$30	$20	60	$0
SF98888	100	$43	$50	$44	50	$8

* the % is a % of the expected selling price

Assume Bartle uses a LIFO costing method. Using the lower-of-cost-or-market value approach applied on an individual-item basis, determine if Bartle needs to make an entry to write her inventory down. If so, prepare the entry Bartle should make.