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		1,000		$	28			$	30			$	34
B		900			33				29				36
C		500			21				20				26
D		600			25				22				24
E		700			32				30				31

The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 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 2.

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• Required 1
• Required 2
• Required 3

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.)

Product (units)	RC	NRV	NRV-NP	Market	Cost	Inventory carrying value
A (1000)	$30,000			$30,000	$28,000	$28,000
B (900)	26,100	29,160		26,100	29,700
C (500)	10,000	11,700			10,500
D (600)	13,200	12,960			15,000
E (700)	21,000	19,530		19,530	22,400	19,530
Total				$75,630	$105,600	$47,530