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	100	$ 5.30	$ 5.80
Saws	230	10.30	9.30
Screwdrivers	330	2.30	2.90
Paint products:
1-gallon cans	530	6.30	5.30
Paint brushes	100	4.30	4.80

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.