Then record necessary journal entries for both methods. Assume the company uses a perpetual inventory system.

The following information pertains to Hagen Metal Work's ending inventory for the current year: Item Quantity 290 280 76 71 Unit Cost $ 10 12 Unit Market Value $ 6 9 12 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. Ending Inventory Individual item method Aggregate method $ 5,740