The controller of Cox Company is applying the Lower of Cost and Net Realizable Value to its ending inventory. The following information is available:

Cost NRV

Lawnmowers:

Self-propelled $14,800 $17,000

Push type 19,000 18,000

Total 33,800 35,000

Snowblowers:

Manual 29,800 31,000

Self-start 19,000 21,000

Total 48,800 52,000

Total inventory $82,600 $87,000

A) Compute the value of the ending inventory by applying the Lower of Cost and Net Realizable Value.

				LCNRV Applies
Description	Category	Cost	NRV	Individual	Category	Total
Self-propelled	Lawnmowers
Push type	Lawnmowers
Total Lawnmowers
Manual	Snowblower
Self-start	Snowblower
Total Snowblowers
Total

B) Prepare the adjusting entry, if required, if LCNRV was applied using individual products

General Journal G1
Date	Account Title and Explanation	Ref.	Debit	Credit