follow the Lower of Cost or Market (LCM) Rule for its inventory. The following information was taken from the company's inventory records as of December 31, 2021:

the following costs to sell associated with all of its products:

1. Sales commission of 5% of the selling price for each product

2. Packaging and delivery costs of 5% of the cost of each product

Also, normal profit margin is 15% of selling price for all of its products.

Requirements:

**Show Excel Functions**

Complete each of the following independent requirements

a) Determine the carrying value of inventory at 12/31/21 assuming that the company applies the LCM Rule to each specific product in its inventory. Also, assuming that the company would record any loss recognized as a separate line item in its income statement, determine the amount of the loss (if any) that the company would record for 2021.

b) Determine the carrying value of inventory at 12/31/21 assuming that the company applies the LCM Rule to its total inventory. Also, assuming that the company would record any loss recognized as a separate line item in it

Product ID Number Item #101 Item #102 Item #103 Item #104 Item #105 Item #201 Item #202 Item #203 Item #204 Quantity on Hand 7,000 8,500 3,000 1,800 3,400 5,000 2,200 1,500 6.000 Cost per Unit $50.00 22.00 122.00 152.00 80.00 84.00 78.00 112.00 110.00 Selling Price per Unit $48.00 26.00 146.00 144.00 106.00 108.00 84.00 150.00 120.00 Replacement Cost per Unit $47.00 27.00 108.00 120.00 82.00 80.00 75.00 110.00 121.00