Required information [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 110 $ 8.00 $ 8.50 Saws 60 11.00 10.00 Screwdrivers 140 3.00 3.60 Drills 50 26.00 24.00 1-gallon paint cans 170 6.50 6.00 Paintbrushes 190 7.00 7.50 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 110 $ 8.00 60 11.00 140 3.00 50 26.00 170 6.50 190 7.00 Unit NRV $ 8.50 10.00 3.60 24.00 6.00 7.50 2. Determine whether each inventory item would be reported at cost or net realizable value. Multiply the quan Inventory item by the appropriate cost or NRV amount and place the total in the "Lower of Cost and NRV" colu determine the total of that column. (Enter all dollar amounts with two decimal places.) Cost and Lower of Cost Inventory Items and NRV per NRV Total unit Hammers Saws Screwdrivers Drills 1-gallon paint cans Paint brushes Total 3. Prepare necessary entry to write down inventory from cost to niet realizable value. (If no entry is required transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment for inventory. 5 Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal ! Required information [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 110 $ 8.00 $ 8.50 Saws 11.00 10.00 Screwdrivers 140 3.00 3.60 Drills 50 26.00 24.00 1-gallon paint cans 170 6.50 6.00 Paintbrushes 190 7.00 7.50 60 4. The write-down of Inventory from cost to net realizable value reduces total assets and increases total expens leading to lower net income and lower retained earnings. True or False True False