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	$ 4.10	$ 4.60
Saws	110	9.10	8.10
Screwdrivers	210	1.10	1.70
Paint products:
1-gallon cans	410	5.10	4.10
Paint brushes	110	3.10	3.60

Required:

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