Almaden Hardware Store sells two distinct types of products, tools and paint products. Information pertaining to its 2016 year-end inventory is as follows:

Inventory, by Product Type	Quantity			Per Unit Cost			Net Realizable Value
Tools:
Hammers		120		$	4.00		$	4.50
Saws		100			9.00			8.00
Screwdrivers		200			1.00			1.60
Paint products:
1-gallon cans		400			5.00			4.00
Paint brushes		120			3.00			3.50

Required:

1.

Determine the book value of inventory at year-end, assuming the lower of cost and net realizable value rule is applied to (a) individual products, (b) product type, 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 lower of cost and net realizable value applications determine the amount of the loss.