How do I solve this? **Lower of Cost or Net Realizable Value (LCNRV) Rule**Determine the proper total inventory value for each of the following items in Erik Company’s ending inventory:a. Erik has 500 rolls of camera film that have become obsolete with the advent of digital cameras. The films cost $3.30 each and are normally sold for $6.60. To clear out these old films, Erik will drop their selling price to $1.98. There are no related selling costs.b. Erik has four cameras in stock that have been used as demonstration models. The cameras cost $760 and normally sell for $960. Because these cameras are in used condition, Erik has set the selling price at $720 each. Expected selling costs are $20 per camera. New models of the camera, already on order, will cost Erik $800 and will sell for $1,040.| Final inventory value ||-----------------------|| a. $ || b. $ |

Value of inventory = Lower of Cost or Net realizable value where, Net realizable value = Sales price - selling costs a. Cost of roll = $3.30 Net realizable value = Sales price = $1.98 Final inventory value = Net realizable value per unit x no. of units = $1.98 x 500 = $990 b. Camera cost = $760 Net realizable value = Sales price - selling costs = 720 - 20 = $700 Final inventory value = Net realizable value per unit x no. of units = $700 x 4 = $2,800