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

Product	Quantity	Unit Cost	Unit Replacement Cost	Unit Selling Price
A	500	$ 18	$ 20	$ 24
B	800	23	19	26
C	700	11	10	16
D	800	15	12	14
E	700	22	20	21

The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 40 percent of the selling price.

Required:

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

Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. Note: Do not round intermediate calculations. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. Note: Do not round intermediate calculations. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Show less A Journal entry worksheet Record any necessary year-end adjusting entry assuming that inventory writedowns are common for Forest Company. Note: Enter debits before credits