Peterson Company is preparing its annual financial statements dated December $31$ of the current year. Ending inventory information

about the five major items stocked for regular sale follows:

Requlred:

Compute the value of ending inventory by using the LC&NRV rule applied on an item$-$by$-$item basis. $($Do not round Intermedlete

calculations and round the final answers to $2$ declmal places.$)$

What will be the effect of the write$-$down of inventory to LC&NRV on cost of sales for the current year? $($Round Intermedlote

calculations and final answer to the nearest whole dollor.$)$

$3-$a$.$ Assume that $37$ units of item $E$ had not been sold by December $31$ of the next year, and that the net realizable value of that item

increased to $$9\mathrm{.}20$ per unit. Calculate the increase in book value. $($Do not round Intermedlote calculatlons and round the flnal

answer to $2$ decimal places.$)$