Exercise $9-6($Algo$)$ Lower of cost or market $[$L$09-1]$

Tatum Company has four products in its inventory. Information about ending inventory is as follows:

The normal profit is $20\%$ of total cost.

Required:

Determine the carrying value of inventory assuming the lower of cost or market $($LCM$)$ rule is applied to individual

products.

Assuming that inventory write$-$downs are common for Tatum Company, record any necessary year$-$end adjusting entry.

Complete this question by entering your answers in the tabs below.

Determine the carrying value of inventory assuming the lower of cost or market $($LCM$)$ rule is applied to individual products.

Journal entry worksheet

$1$

Record any necessary year$-$end adjusting entry assuming that inventory write$-$

downs are common for Tatum Company.

Note: Enter debits before credits.