Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows:

Inventory, by Product Category	Quantity			Per Unit Cost				Market
Furniture:
Chairs	50			$	25			$	31
Desks	10				73				58
Tables	20				84				92
Accessories:
Rugs	40				60				48
Lamps	30				22				18

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. 2. Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement

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

• Required 1
• Required 2

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.

			Lower of cost or market
Product	Cost	Market	By Individual Products	By Product Categories	By Total Inventory
Furniture:
Chairs
Desks
Tables
Total furniture	$0	$0
Accessories:
Rugs
Lamps
Total accessories	$0	$0
Total	$0	$0	$0	$0