In 2021, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2020 of $117,000 would have been $130,000 if FIFO had been used. Inventory at the end of 2021 is $142,000 using the new FIFO method but would have been $138,000 if the company had continued to use LIFO. What is the effect of the change on 2021 cost of goods sold? 2021 cost of goods sold is higher Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Product 101 102 103 104 Total Cost $142,000 100,000 71,000 41,000 Total Net Realizable Value $111,000 121,000 61,000 61,000 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or ne rule is applied to individual products. Product Inventory Value 101 $ 102 103 Cost 142,000 $ 100,000 71,000 41,000 354,000 NRV 111,000 121,000 61,000 61,000 104 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming that inventory write-downs are common for Tatum Company, record any necessary year. required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet