You have been assigned to analyze the year-end inventory of Syncro Company. This company sells three items of inventory and tracks of the average purchase cost and average selling price each month. At the end of each year (December), the company uses the lower of cost or net realizable value (LCNRV) approach to report ending inventory. The total cost of ending inventory is shown in the bottom right of the dashboard. Also shown in the bottom right are two amounts for net realizable value (NRV) of ending inventory: 1. NRV_Dec = Average selling price per unit in December times the number of units in ending inventory. 2. NRV_Dec-Selling Costs = Average selling price per unit in December minus estimated selling costs of $2 per unit, times the number of units in ending inventory. The estimated selling cost of $2 is the average cost of selling a unit of inventory (packaging, shipping, sales commissions, etc.) Use the dashboard provided to answer the following questions. Begin by selecting Syncro in the filter box at the top left. Required: Complete this question by entering your answers in the tabs below. What is Syncro's total revenue, total cost of goods sold, gross profit, and ending inventory for the year before any year-end adjustments? Complete this question by entering your answers in the tabs below. Which approach to calculating LCNRV is more conservative-by individual item or by total inventory? Which anoroach to calculating LCNRV is more conservative _-by individual item or by total inventory? Complete this question by entering your answers in the tabs below. What is the NRV of ending inventory for item #2 based on each of the two estimates? Record the adjusting entry. Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the f Journal entry worksheet Note: Enter debits before credits. Required: Complete this question by entering your answers in the tabs below. Verify your answer in 2a by determining the number of units in ending inventory and the average cost per unit of ending inventory. Note: Round your "Average cost per unit" to 2 decimal places. Required: Complete this question by entering your answers in the tabs below. Applying the LCNRV approach to each individual item, determine which inventory item(s) require an adjustment and the amount of the total adjustment needed based on the correct estimate of NRV. Lower of Cost or Net Realizable Value Now assume that instead of applying LCNRV to each individual item, you decide to treat all inventory as a single total. What the amount of the total adjustment needed using this alternative approach to LCNRV? (Hint: Select "(All)" inventory items in the filter box near the top left.) Complete this question by entering your answers in the tabs below. After the adjustment for LCNRV in Requirement 3b, recalculate the total revenue, total cost of goods sold, gross profit, and ending inventory for the year and compare your answers to those in Requirement 1. Required: Complete this question by entering your answers in the tabs below. What is the total cost of ending inventory for inventory item \#2? (Hint: Select Inventory Item \#2 in the filter box near the top left.) b e a You have been assigned to analyze the year-end inventory of Syncro Company. This company sells three items of inventory and tracks of the average purchase cost and average selling price each month. At the end of each year (December), the company uses the lower of cost or net realizable value (LCNRV) approach to report ending inventory. The total cost of ending inventory is shown in the bottom right of the dashboard. Also shown in the bottom right are two amounts for net realizable value (NRV) of ending inventory: 1. NRV_Dec = Average selling price per unit in December times the number of units in ending inventory. 2. NRV_Dec-Selling Costs = Average selling price per unit in December minus estimated selling costs of $2 per unit, times the number of units in ending inventory. The estimated selling cost of $2 is the average cost of selling a unit of inventory (packaging, shipping, sales commissions, etc.) Use the dashboard provided to answer the following questions. Begin by selecting Syncro in the filter box at the top left. Required: Complete this question by entering your answers in the tabs below. What is Syncro's total revenue, total cost of goods sold, gross profit, and ending inventory for the year before any year-end adjustments? Complete this question by entering your answers in the tabs below. Which approach to calculating LCNRV is more conservative-by individual item or by total inventory? Which anoroach to calculating LCNRV is more conservative _-by individual item or by total inventory? Complete this question by entering your answers in the tabs below. What is the NRV of ending inventory for item #2 based on each of the two estimates? Record the adjusting entry. Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the f Journal entry worksheet Note: Enter debits before credits. Required: Complete this question by entering your answers in the tabs below. Verify your answer in 2a by determining the number of units in ending inventory and the average cost per unit of ending inventory. Note: Round your "Average cost per unit" to 2 decimal places. Required: Complete this question by entering your answers in the tabs below. Applying the LCNRV approach to each individual item, determine which inventory item(s) require an adjustment and the amount of the total adjustment needed based on the correct estimate of NRV. Lower of Cost or Net Realizable Value Now assume that instead of applying LCNRV to each individual item, you decide to treat all inventory as a single total. What the amount of the total adjustment needed using this alternative approach to LCNRV? (Hint: Select "(All)" inventory items in the filter box near the top left.) Complete this question by entering your answers in the tabs below. After the adjustment for LCNRV in Requirement 3b, recalculate the total revenue, total cost of goods sold, gross profit, and ending inventory for the year and compare your answers to those in Requirement 1. Required: Complete this question by entering your answers in the tabs below. What is the total cost of ending inventory for inventory item \#2? (Hint: Select Inventory Item \#2 in the filter box near the top left.) b e a