Required Information Problem 6-4B Report inventory using lower of cost and net realizable value (L06-6) [The following information applies to the questions displayed below.) A home improvement store, like Lowe's, carries the following items: Inventory Items Hammers Saws Screwdrivers Drills 1-gallon paint cans Paintbrushes Quantity Unit Cost 120 $ 6.30 40 9.30 120 1.30 30 24.30 150 4.80 170 5.30 Unit NRV $ 6.80 8.30 1.90 20.60 4.30 5.80 Problem 6-4B Part 1 Required: 1. Compute the total cost of inventory Total cost A home improvement store, like Lowe's, carries the following items: Inventory Items Hammers Saws Screwdrivers Drills 1-gallon paint cans Paintbrushes Quantity Unit Cost 120 $ 6.30 40 9.30 120 1.30 30 24.30 150 4.80 170 5.30 Unit NRV $ 6.80 8.30 1.90 20.60 4.30 5.80 Problem 6-48 Part 2 2. Determine whether each inventory item would be reported at cost or net realizable value, and then place that unit amount in the "Lower of Cost and NRV per unit" column. Multiply the quantity of each inventory item by the appropriate cost or NRV unit amount and place the total in the "Total" column. (Round "Cost per Unit" to 2 decimal places.) Lower of Cost Cost or NRV and NRV per unit Total Inventory Items Hammers Saws Screwdrivers Drills 1-gallon paint cans Paint brushes Total $ 0 Problem 6-48 Part 3 3. Prepare necessary entry to write down inventory from cost to net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction Hist Journal entry worksheet Record the adjustment for inventory Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal Problem 6-4B Report inventory using lower of cost and net realizable value (LO6-6) [The following information applies to the questions displayed below.) A home improvement store, like Lowe's carries the following items: Inventory Items Quantity Unit Cost Unit NRV Hammers 120 $ 6.30 $ 6.80 Saws 40 9.30 8.30 Screwdrivers 120 1.30 1.90 Drills 30 24.30 20.60 1-gallon paint cans 150 4.80 4.30 Paintbrushes 170 5.30 5.80 Problem 6-4B Part 4 4. The write-down of inventory from cost to market net realizable value reduces total assets and increases total expenses, leading to lower net Income and lower retained earnings. True or False True False