Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 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:

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 Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.