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1. Firm A has five products in its inventory. The cost to sell each product consists of a 20% sales commission. The normal profit margin for each product is 30% of selling price. As of December 31, 2021, the following information pertains to Firm As inventory:

		Unit	Replacement	Selling
Product	Quantity	Cost	Cost	Price
A	500	10.00	12.00	18.00
B	650	15.00	14.00	20.00
C	800	6.00	8.00	9.00
D	725	10.00	7.00	10.00
E	600	8.00	10.00	12.00

a. Assume Firm A applies the Lower of Cost or Net Realizable Value (LCNRV) rule at an individual product level. What is the total value of inventory reported using this approach? Does Firm A need to write-down its inventory? If so, what is the amount of the write-down? b. Assume Firm A applies the Lower of Cost or Market (LCM) rule at an individual product level. What is the total value of inventory reported using this approach? Does Firm A need to write-down its inventory? If so, what is the amount of the write-down? c. Assume the amount of inventory write-down is $15,000. Prepare the adjusting journal entry needed if write-downs are common for Firm A: