P6-43 A home inprovement store, like Lowe's, caris the following temas Lower of Cost and NRV Unit NRV Unit Cost Quantity Inventory Items 8.50 10.00 $8.00 110 Hammers 11.00 60 Saws 3.60 3.00 140 50 Screwdrivers 24.00 26.00 Drills 6.00 170 6.50 1-gallon paint cans Paintbrushes 7.50 7.00 190 Required: 1. Compute the total cost of inventory. 2. Determine whether each inventory item would be reported at cost or net realizable value. Multiply the quantity of each inventory item by the appropriate cost or NRV amount and place the total in the "Lower of Cost and NRV" column. Then determine the total of that column. 3. Compare your answers in requirement 1 and requirement 2 and then record any necessary adjustment to write down inventory from cost to net realizable value. . Discuss the financial statement effects of using lower of cost and net realizable value to report inventory