Use the following to answer the question 11 below: Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees. Selling Price Cost $ 1,800 2,200 $ 1,700 1,600 Broad leaf trees: Ash Beech Needle leaf trees: Cedar Fir Fruit trees: Apple Cherry $2,500 3,600 $1,750 3,350 $ 1,800 2,300 $1,400 1,800 The costs to sell are 10% of selling price. Page 4 of 9 Test #3 - Ch 8-9 - Take-home 11) Required: a. Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to individual trees. (2 pts) b. Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to the group of trees. (2 pts) 12) Henderson Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of July was $122,500 The following information for the month of August was available from company records: o Purchases Freight-in Sales Sales returns Purchases returns $219,000 t 5,200 350,000 9,000 4,300 In addition, the controller is aware of $10,000 of inventory that was stolen during August from one of the company's warehouses. Required: Calculate the estimated inventory at the end of August, assuming a gross profit ratio of 30%. (3 pt Show your work or you will lose 1 point. Page