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Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows:

Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows:

Required:

  1. 1-a. Complete the table column Write-Down per Item and then sum the final column.
  2. 1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item.
  3. 2. Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/NRV.

Item Unit Cost (FIFO) NRV per Item Write-down per Item Quantity on Hand Total Write-down
Alligator Armoires $30 $24 65
Bear Bureaus 31 31 30
Cougar Credenzas 54 57 45
Dingo Cribs 55 55 95
Elephant Dressers 40 34 25

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