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

Product	Quantity	Unit Cost	Unit Replacement Cost	Unit Selling Price
A	900	$ 29	$ 31	$ 35
B	900	34	30	37
C	900	22	21	27
D	900	26	23	25
E	1,000	33	31	32

The cost to sell for each product consists of a 20 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