Forester Company has five products in its inventory. Information about the December 31, 2018, 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 percentage for each product is 40 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products.

RC, NRV, NRV-NP, MARKET,COST, INVENTORY VALUE

2a. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory. 2b. Assuming inventory write-downs are usual business practice for Forester, record any necessary year-end adjusting entry.