Exercise 9-6 (Algo) Lower of cost or market [LO9-1] Tatum Company has four products in its inventory. Information about ending inventory is as follows: Product 101 Total Cost $ 163,000 102 120,800 103 104 80,400 41,100 Total Replacement Cost $ 148,700 114,000 53,600 38,400 Total Net Realizable Value $ 135,100 147,600 67,900 69,000 The normal profit is 40% of total cost. Required: 1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Product Total Cost Replacement cost NRV NRV minus Market NP Inventory Value 101 S 163,000 $ 148,700 $ 135,100 $ 102 120,800 114,000 147,600 69,900 99,280 135,100 $ 135,100 99,280 99,280 x 103 80,400 53,600 67,900 35,740 53,600 53,600 104 41,100 38,400 69,000 52,560 52,560 41,100 Totals S 405,300 $ 329,080 < Required 1 Required 2