Required information E7-11 Reporting Inventory at Lower of Cost or Market/Net Realizable Value [LO 7-4] [The following information applies to the questions displayed below.] Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory about the five major items stocked for regular sale follows: E7-11 Part 1 Required: 1-a. Complete the table column "Write-Down per Item" and then sum the final column. 1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item. Req 1A Complete this question by entering your answers in the tabs below. Item Alligator Armoires Bear Bureaus Cougar Credenzas Check my work mode: This shows what is correct or incorrect for the work yo Req 1B Complete the table column "Write-Down per Item" and then sum the final column. Write- down per Item Dingo Cribs Elephant Dressers Unit Cost (FIFO) 50 43 45 22 53 $ $ NRV per Item 45 43 53 22 48 ✔Answer is complete and correct. $ S 50 0♥ 00 0- 5✔ Quantity on Hand 95 50 45 80 75 $ $ Total Write- down 475 0✔ 0✔ 0✔ 375 < Prev 3 S 4 of 5 #

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…