Part Two

The following table displays the cost and net realizable value of the various items in Taylor Tools$$ inventory. Use the ending balance of inventory on hand on your perpetual inventory record for item #$2--$Handyman Hammers to determine the historical cost for the type of inventory. Use the information above to determine the cost and NRV for the company's sanders. After, complete the following table to determine what is lower, the cost or NRV of inventory. As always, you can elect to determine NRV based on inventory as a whole, the sum of major categories, or the sum of individual items.

Items Cost NRV $($inventory as a whole$)$ Major Categories Individual Items

Hand Tools:

Hammers $$2,600$

Screwdrivers $1,9001,800$

Ratchets $2,7003,200$

Total Hand Tools

Power Tools:

Saws $$8,910$ $$7,900$

Sanders $-$

Total Power Tools

Total Inventory

Part Three

Taylor Tools wants to maximize the value of its reported assets yet still adhere to the LCNRV rule, what inventory value should the company report on its end$-$of$-$quarter balance sheet?