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			$	4.70			$	5.20
Saws	170				9.70				8.70
Screwdrivers	270				1.70				2.30
Paint products:
1-gallon cans	470				5.70				4.70
Paint brushes	110				3.70				4.20

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.

• Required 1
• Required 2

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.

			Lower of cost and NRV
		Net Realizable Value	By Individual Products	By Product Categories	By Total Inventory
Product	Cost
Tools:
Hammers	$517	$572	$517
Saws	1,649	1,479	1,479
Screwdrivers	459	621	459
Total tools	$2,625	$2,672		$2,625
Paint products:
1-gallon cans	$2,679	$2,209	2,209
Paint brushes	407	462	407
Total paint	$3,086	$2,671		2,671
Total	$5,711	$5,343	$5,071	$5,296	$5,343

Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Transaction	General Journal	Debit	Credit
1	1	Cost of goods sold
		Inventory
2	2	Cost of goods sold
		Inventory
3	3	Cost of goods sold
		Inventory