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.

Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows Total Replacement Cost Total Net Product Total Cost Realizable Value 101 102 103 104 $144,000 107,200 71,400 36,200 $131,600 101,200 47,600 33,800 $119,600 131,000 60,000 60,600 The normal gross profit percentage is 30% 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. Complete this question by entering your answers in the tabs below. Required 1Required 2 Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products Replacement cost Market Inventory Product Cost NRV NRV - NP Value $ 131,600 119,600S83,800 119,600 S 119,600 144,000 107,200 71,400 36,200 Totals358,800 102 103 104 101,200 47,600 33,800 131,000 60,000 60,600 S 119,600 Required 1 Required 2>