Please complete all requirements listed below. You have been assigned to analyze the year$-$end inventory of Kylox Company. This company sells three items of

inventory and tracks of the average purchase cost and average selling price each month. At the end of each year

$($December$),$ the company uses the lower of cost or net realizable value $($LCNRV$)$ approach to report ending inventory.

The total cost of ending inventory is shown in the bottom right of the dashboard. Also shown in the bottom right are two

amounts for net realizable value $($NRV$)$ of ending inventory:

Selling Price$\_$Dec $=$ Average selling price per unit in December times the number of units in ending inventory.

NRV$\_$Dec $=$ Average selling price per unit in December minus estimated selling costs of $$2$ per unit, times the

number of units in ending inventory. The estimated selling cost of $$2$ is the average cost of selling a unit of

inventory $($packaging$,$ shipping, sales commissions, etc.$)$

Use the dashboard provided to answer the following questions. Begin by selecting Kylox in the filter box at the top left. Req. $1$: What is Kylox$$s total revenue, total cost of goods sold, gross profit, and ending inventory for the year before any year$-$end adjustments? Req $2$: Applying the LCNRV approach to each individual item, determine which inventory item$($s$)$ require an adjustment and the amount of the total adjustment needed based on the correct estimate of NRV$.$ Req. $3$: Record the adjusting entry.

Note: If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field. Req. $4$: After the adjustment for LCNRV in Requirement $3$b$,$ recalculate the total revenue, total cost of goods sold, gross profit, and ending inventory for the year and compare your answers to those in Requirement $1.$ Req. $5$: Now assume that instead of applying LCNRV to each individual item, you decide to treat all inventory as a single total. What is the amount of the total adjustment needed using this alternative approach to LCNRV$?($Hint: Select $($All$)$ inventory items in the filter box near the top left.$)$