View Policies Current Attempt in Progress Pharoah Home Improvement Company installs replacement siding, windows, and fouvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide controller for Pharoah, has gathered the following data concerning inventory. At May 31, 2020, the balance in Pharoah's Raw Materials inventory account was $420,240, and Allowance to Reduce Inventory to NRV had a credit balance of $27,400. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below Alcide assigned Patricia Devereaux an intern from a local college, the task of calculating the amount that should appear on Pharoah's May 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory Devereaux expressed concern over departing from the historical cost principle Cost Sales Price Net Realizable Value $72.100 $65.920 $57,680 88.580 96.820 87,344 Aluminum siding Cedar shake siding Louvered glass doors Thermal windows Total 115.360 191.992 173,349 144,200 159.444 144,200 $420.240 $514,176 $462,573 (a) Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2020. Balance in the Allowance to Reduce Inventory to NRV $