PHL follows a policy of FIFO costing, and values items at the lower of cost and market based on an individual item basis.

The hotel has a standing weekly order at set prices with a local catering firm. If the food is not eaten before the next delivery is received, it is donated to the local women's shelter. This ensures that all meals are of appropriate quality for the hotel guests.

On December 31, the following items were delivered:

Item	Unit Cost	Net Realizable Value
40 chicken dinners	$5	$12
35 beef dinners	$6	$15
75 frozen vegetable servings	$1	$2
75 units of fresh fruit	$1	$2
100 desserts	$3	$5

The invoice for the food delivery on December 31 included an additional delivery charge of $0.10 per item, totaling $32.50.

On December 31, an ice storm resulted in a loss of electricity to the hotel building. As a result, 20 chicken and 10 beef dinners thawed and were unusable.

The hotel also maintains an inventory of white terry cloth bathrobes and towels that are available for sale to its clients. At December 31, the following information is available:

Product	Quantity	Cost/Unit	Selling Price/Unit
Bathrobes, assorted sizes	40	$49.50	$85.00
Towels, extra-large	25	$19.30	$18.00a
Towels, large	20	$15.00	$28.00

^aThe extra-large towels are no longer popular and management has decided to discontinue them. It offers the hotel staff a 20% commission for all extra-large towels they sell at the sale price of $18.00.

Question:Calculate the carrying value of each inventory item as at December 31. Identify any inventory that requires a writedown along with the amount of writedown.

Please provide explanation. Thanks.