12.

Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows:

Inventory, by Product Category Furniture: Chairs Per Unit Quantity Market Cost $35 41 20 Desks 60 83 68 Tables 70 94 102 Accessories: Rugs Lamps 30 70 58 70 32 28 Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement 1. Required 1 Required 2 Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. Lower of cost or market By Individual Products By Product Categories By Total Inventory Market Product Cost Furniture: Chairs Desks Tables Total furniture 0 0 Accessories: Rugs Lamps Total accessories 0 Total Required 1 Required 2 Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement 1 (a) Individual products (b) Product categories (c) Total inventory