Ace Hardware Store sells two product categories, tools and paint products. Information pertaining to its year-end inventory is as follows:

Inventory, by Product Category	Quantity	Per Unit Cost	Net Realizable Value
Tools:
Hammers	110	$ 4.40	$ 4.90
Saws	140	9.40	8.40
Screwdrivers	240	1.40	2.00
Paint products:
1-gallon cans	440	5.40	4.40
Paint brushes	110	3.40	3.90

Required:

Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.

Assuming inventory write-downs are common for Ace, record any necessary year-end adjusting entry for each of the LCNRV applications in requirement 1.