The inventory of Martinez SE on December $31,2022,$ consists of the following items.

${?}^2$ Part No$.$ AZ$999$ is obsolete and has a realizable value of $1$ each as scrap.

Instructions

a$)$ Determine the inventory value as of December $31,2022,$ by the LCNRV method,

i$.$ Applying this method to each item, and

ii$.$ Assuming that all parts are in the same category.

b$)$ If the company decides to apply the LCNRV method to each item, prepare the journal

entries using an allowance method to write down the ending inventory from cost to NRV$,$

if the balance in the "Allowance to Reduce Inventory to NRV$"$ account has been stated at

$55,200$ credit balance at the beginning of the year $2022$ due to the obsolescence of the

part No$.$ AZ$999.$

a$)$