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The following information pertains to Wroten Hardware'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, using the
(1) Individual method
(2) Aggregate method.
Wroten Hardware uses the perpetual inventory system.
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