prepare journal entry to record adjustment from cost to net relizable value

Sandhill Co.uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Sandhill Co.'s year end, December 31: Units 93 75 Unit Cost $7 20 Clothing Jewellery Greeting cards Stuffed toys Net Realizable Value per Unit $5 22 4 42 1 52 11 40 Determine the lower of cost and net realizable value of the ending inventory assuming Sandhill Co, applies LCNRV on individual items