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		500		$	20			$	22			$	26
B		1,000			25				21				28
C		600			13				12				18
D		1,000			17				14				16
E		500			24				22				23

The cost to sell for each product consists of a 20 percent sales commission. The normal profit percentage for each product is 25 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.

Product (units)	RC	NRV	NRV-NP	Market	Cost	Inventory Value
A (500)
B (1000)
C (600)
D (1000)
E (500)
Total				$	$	$

2a. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory (Do not round intermediate calculations.)

0

Inventory carrying value	$

2b. Assuming inventory write-downs are usual business practice for Forester, record any necessary year-end adjusting entry. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record any necessary year-end adjusting entry assuming that inventory write-downs are common for Forester Company.