Decker Company has five products in its inventory. Information about ending inventory follows.

Product	Quantity	Unit Cost	Unit Selling Price
A	1,200	$ 14	$ 20
B	1,000	19	22
C	800	5	10
D	400	9	8
E	800	18	17

The cost to sell for each product consists of a 10 percent sales commission.

Required:

1. Determine the carrying value of ending inventory, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products.
2. Determine the carrying value of ending inventory, assuming the LCNRV rule is applied to the entire inventory.
3. Assuming inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.

Product Units Cost NRV Inventory Value A 1,200 B 1,000 C 800 D 400 E 800 < Required 1 Required