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 $1.$

Complete this question by entering your answers in the tabs below.

Required $1$

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.