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

Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price

A $500$ $ $15$ $ $17$ $ $21$

B $600201623$

C $6008713$

D $80012911$

E $500191718$

The cost to sell for each product consists of a $10$ percent sales commission. The normal profit for each product is $25$ percent of the selling price.

Required:

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

Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory.

Assuming inventory write$-$downs are common for Forest, record any necessary year$-$end adjusting entry based on the amount calculated in requirement $2.$