(a)	Individual products
(b)	Product categories
(c)	Total inventory

Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2018 year-end inventory is as follows:

Inventory, by Product Category	Quantity			Per Unit Cost				Market
Furniture:
Chairs	50			$	38			$	44
Desks	70				86				71
Tables	30				97				105
Accessories:
Rugs	60				73				61
Lamps	50				35				31

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 that the company reports an inventory write-down as a line item in the income statement, for each of the LCM applications determine the amount of the loss.

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
Product	Cost	Market	By Individual Products	By Product Type	By Total Inventory
Furniture:
Chairs
Desks
Tables
Total furniture	$0	$0
Accessories:
Rugs
Lamps
Total accessories	$0	$0
Total	$0	$0	$0	$0