Marley company sells drip coffee makers used in business offices. Its beginning inventory of coffee makers was 400 units at $50 each. During the year, Marley made two purchaases of coffee makers. The first purchase was 500 units at $70 per unit; the second was a 600-unit-purchase at $75 per unit. During the period Marley sold 1300 coffee makers at a price of $100. Due to the introduction of K cups in the last part of the year, the sales price of the drip coffee makers dropped to $75 and the replacement cost of drip coffee makers that Marley would buy in the future to $68.
Does the drop in the replacement cost of drip coffee makers impact the ending inventory valuation under FIFO, LIFO, and/or weighted average? If so, which method(s) and why? What would be your journal entry to record any such valuation writedown? Provide the debit and credit (and amounts) for any writedown entry(ies).