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

Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price

A $1,000$ $ $22$ $ $24$ $ $28$

B $700272330$

C $900151420$

D $600191618$

E $900262425$

The cost to sell for each product consists of a $10$ percent sales commission. The normal profit for each product is $30$ 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 $2.$