Question $2$ of $4$

$-16$

Sage Home Improvement Company installs replacement siding, windows, and louvered glass doors for single$-$family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May $31.2025.$ Jim Alcide, controller for Sage, has gathered the following data concerning inventory.

At May $31,2025,$ the balance in Sage's Raw Materials Inventory account was $$465,120.$ Alcide summarized the relevant inventory cost and market data at May $31,2025,$ in the schedule below.

Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Sage's May $31,2025,$ financial statements for inventory under the lower$-$of$-$cost$-$or$-$market rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Consider the following expanded data at May $31,2025.$ Assume Sage uses LIFO inventory costing.

$\backslash$table$[[,$Cost,$\backslash$table$[[$Replacement$],[$Cost$]],$Sales Price,$\backslash$table$[[$Net Realizable$],[$Value$]],$Normal Profit$],[$Aluminum siding,$$79,800,$$$71,250,$$$72,960,$$$63,840,$$$5,814],[$Cedar shake siding,$98\mathrm{.}040,90,516,107,160,96,672,8,436],[$Louvered glass doors,$127,680,141,360,212,496,191,862,21,090],[$Thermal windows,$159,600,143,640,176,472,159,600,17,556],[$Total$,$$$465,120,$$$446,766,$$$569,088,$$$511,974,$$$52,896]]$

Question $1)$ Determine the write down, if any, to reduce inventory to market at May $31,2025.$

Question $2)$ For the fiscal year ended May $31,2025$ prepare the entry to record the decline in inventory to market $,$ if any, using the loss method.