P6-4A A local Chevrolet dealership carries the following types of vehicles: Lower of Cost and NRV Inventory Items Vans Quantity 4 7 3 5 1 6 Trucks 2.door sedans 4-door sedans Sports cars SUVS NM Unit Cost $27,000 18.000 13,000 17.000 37.000 30,000 Unit NRV $25,000 17,000 15.000 20.000 40,000 28,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Required: 1. Compute the total cost of the entire inventory. 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). 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 for 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. 4. Discuss the financial statement effects of using lower of cost and net realizable value to report inventory