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The following information pertains to Smith Woodwork Co.'s ending inventory for the current year:
Required:
a. Determine the value of the ending inventory using the lower of cost or market rule applied to (1) Each individual inventory item (2) The inventory in aggregate.
b. Prepare any necessary journal entries, assuming the decline in value is immaterial. Smith Woodwork Co. uses the perpetual inventory system. (Make entries for both methods.)
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