Forest Company has five products in its inventory. Information about ending inventory follows. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory.

Note: Do not round intermediate calculations.

Inventory carrying value 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.

Journal entry worksheet

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

downs are common for Forest Company.

Nate: Enter debits before credits.

The cost to sell for each product consists of a $15$ 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 $2.$

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

Required $1$

Required $3$

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.