Smart Company prepared its annual financial statements dated December 31. The company reported its inventory using the FIFO Inventory costing method and falled to evaluate its net realizable value at December 31. The preliminary income statement follows: 5294,000 $ 37,000 196,800 233,800 113,700 Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (30%) Net Income 119,300 174,700 68,000 106,700 32,010 $ 74,690 Assume you have been asked to restate the financial statements to incorporate lower of cost or market / net realizable value (LCM/NRV) You have developed the following data relating to the ending inventory Purchase Cost Net Realizable Item Quantity Per Unit Total Value per Unit 2,600 $7 $ 18,200 4 6,400 2 69,300 11 D 3,300 19,800 $113,700 C7,700 6 3 Apply LCM/NRV on an item-by-tem basis