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Home Stop sells two product categories, furniture and accessories. Information pertaining to its year-end inventory is as follows: Inventory, by Product Category Quantity Per Unit

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

Inventory, by Product Category Quantity Per Unit Cost Market
Furniture:
Chairs 50 $ 26 $ 32
Desks 20 74 59
Tables 70 85 93
Accessories:
Rugs 50 61 49
Lamps 30 23 19

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.

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