The following information pertains to Hagen Metal Works ending inventory for the current year:

Item		Quantity				Unit Cost					Unit Market Value
C			90				$	24				$	16
D			75					22					20
K			40					25					28
M			22					15					17

Required a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to (1) each individual inventory item and (2) the inventory in aggregate.

b. Calculate the adjustment required under both methods, assuming the decline in value is immaterial.