Management of Tarry Company reports the following inventory using LFO and applies the lower of cost or market rule. - Edgers: 960 units in inventory; cost, is $22 eachc replacement cost is $16 each; estimated sale price is $30 eachy estimated distribution cost is $3 each; and normal profit is 10% of sale price. - Clippers: 640 units in imventory, cost is $50 each; replacement cost is $36 each; estimated sale price is $90 each; estimated distribution cost is $28 each; and normal profit is 20% of sale price. Required a. Determine the inventory cost to report on the balance sheet assuming that the company applies the lower of cost or market rule to each inventory item. b. Prepare the journal entry to apply the lower of cost or market rule to irventory assuming that the company adjusts imventory directly and adjusts equity through cost of goods sold