Tatum Company has four products in its inventory Information about the December 31, 2021, inventory is as follows Product Total Cost Total Net Realizable Value 101 $ 144,000 $ 112,000 102 102,000 122,000 103 72,000 62,000 104 42,000 62,000 Required 1 Determine the carrying value of inventory at Dec...

Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as

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Question:

Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows:

Product	Total Cost		Total Net Realizable Value
101	$	144,000	$	112,000
102		102,000		122,000
103		72,000		62,000
104		42,000		62,000

Required:
1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products.
2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.