Maxwell Corporation provides you with the following inventory related to its inventory at December 31, 2023 :

Inventory Original Cost Replacement Net Realizable Net Realizable Appropriate

Item per Unit Cost Value Value Less Inventory Value

Normal Profit at 12/31/23

A $.65 $.45 ____ _____ ____

B .45 .40 _____ _____ _____

C .70 .75 _____ _____ _____

D .75 .65 _____ _____ _____

E .90 .85 _____ _____ _____

The normal selling price is $1.00 per unit for All items. Disposal costs amount to 10% of the selling price and a normal profit is 30% of selling price. There are 1,500 units of EACH item in the 12/31/23 inventory.

Required:

1. Complete the last three columns in the schedule above using the lower of cost or market rules.

2. Prepare the necessary adjusting entry at 12/31/23 to record inventory at lower of cost or market. All items are aggregated.