S Problem 6-4A (Algo) Report inventory using lower of cost and net realizable value (LO6-6) A local Chevrolet dealership carries the following types of vehicles: Quantity 2 Unit Cost $17,000 16,000 Unit NRV $15,000 5 15,000 1 11,000 13,000 6 15,000 18,000 2 27,000 30,000 26,000 18,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, Required: 1. Compute the total cost of the entire inventory. 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either the Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of each inventory item and enter it in the Total column. Inventory Items Vans Trucks 2-door sedans 4-door sedans Sports cars SUVS 3. Record any necessary adjusting entry to write down inventory from cost to net realizable value. 4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory. 7 Complete this question by entering your answers in the tabs below. Required 1 Total cost Required 2 Required 3 Required 4 Compute the total cost of the entire inventory. 4 of 10 www Next > and trucks.

Problem 6-4A (Algo) Report inventory using lower of cost and net realizable value (LO6-6) A local Chevrolet dealership carries the following types of vehicles: Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Required: 1. Compute the total cost of the entire inventory. 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either the Uni Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of each inventory item and enter it in the Total column. 3. Record any necessary adjusting entry to write down inventory from cost to net realizable value. 4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory. Complete this question by entering your answers in the tabs below. Compute the total cost of the entire inventory