Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows.

Product		Quantity		Unit Cost				Unit Replacement Cost				Unit Selling Price
A		500		$	15			$	17			$	21
B		600			20				16				23
C		600			8				7				13
D		800			12				9				11
E		500			19				17				18

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: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement

Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. (Do not round intermediate calculations.)

1.

Product (units)	RC	NRV	NRV-NP	Market	Cost	Inventory carrying value
A (500)
B (600)
C (600)
D (800)
E (500)
Total				$0	$0	$0

2. Inventory carrying value:

3. Record the adjusting entry assuming inventory write-downs are common for Forester company: