Product	Cost	Replacement cost	NRV	NRV - NP	Market	Inventory Value
101	$152,000	$138,800
102	113,000	106,700
103	75,300	50,200
104	38,300	35,700
Totals	$378,600					$0

Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows:

Product	Total Cost			Total Replacement Cost			Total Net Realizable Value
101	$	152,000		$	138,800		$	126,200
102		113,000			106,700			138,100
103		75,300			50,200			63,400
104		38,300			35,700			64,100

The normal gross profit percentage is 35% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.