Home Stop sells two product categories, furniture and accessories. Information pertaining to its year$-$end inventory is as follows:

Required:

Determine the carrying value of inventory at year$-$end, assuming the lower of cost or market $($LCM$)$ rule is applied to $($a$)$ individual

products, $($b$)$ product categories, and $($c$)$ total inventory.

Assuming inventory write$-$downs are common for Home Stop, record any necessary year$-$end adjusting entry for each of the LCM

applications in requirement $1$

Individual product: $13,760,$ Product categories: $14,300,$ total inventory: $14,300$

$1$