York Co. sells one product, which it purchases from various suppliers. York's trial balance at December 31,2016, included the following accounts: Sales (33,000 units $16) Sales discounts Purchases Purchase discounts Freight-in Freight-out $528,000 7,500 368,900 18,000 5,000 11,000 York Co.'s inventory purchases during 2016 were as follows: Cost per Unit Units Total Cost Beginning inventory Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended September 30 Purchases, quarter ended December 31 8,000 12,000 15,000 13,000 7,000 55,000 $8.20 8.25 7.90 7.50 7.70 65,600 99,000 118,500 97,500 53,900 $434,500 Additional Information: a. York's accounting policy is to report inventory in its financial statements at the lower of cost and net realiz- able value, applied to total inventory. Cost is determined under the last-in, first-out (LIFO) method. b. York has determined that, at December 31,2016, the net realizable value was $8.00 per unit Required: 1. Prepare York's schedule of cost of goods sold, with a supporting schedule of ending inventory. York includes ost of goods sold inventory write-down losses in c 2. Explain the rule of lower of cost and net realizable value and its application in this situation