Scheiner Company carries three inventory items. The following information pertains to the ending inventory:
![2494_264-B-M-A-I (1850).png](https://secure.tutorsglobe.com/CMSImages/2494_264-B-M-A-I (1850).png)
Required:
a. Determine the ending inventory that will be reported on the balance sheet, assuming that Scheiner applies the lower of cost or market rule to individual inventory items.
b. Prepare the necessary journal entry, assuming the decline in value is immaterial.