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A company like Golf USA that sells golf-related inventory typically will have inventory items such as golf clothing and golf equipment. As technology advances the design and performance of the next generation of drivers, the older models become less marketable and therefore decline in value. Suppose that in the current year, Ping (a manufacturer of golf clubs) introduces the MegaDriver II, the new and improved version of the MegaDriver. Below are year-end amounts related to Golf USAs inventory.

Inventory	Quantity	Unit Cost			Unit NRV
Shirts	40	$	65		$	75
MegaDriver	20		410			275
MegaDriver II	35		375			470

Required:

1. Calculate the total recorded cost of ending inventory before any adjustments.

2. Calculate ending inventory using the lower of cost and net realizable value.

3. Record any necessary adjustment to inventory. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)