Problem 9-2 (Algo) Lower of cost or net realizable value; by product, category, and total inventory [LO9-1]

Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows:

Inventory, by Product Category	Quantity			Per Unit Cost				Net Realizable Value
Tools:
Hammers	100			$	5.60			$	6.10
Saws	260				10.60				9.60
Screwdrivers	360				2.60				3.20
Paint products:
1-gallon cans	560				6.60				5.60
Paint brushes	100				4.60				5.10

Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.