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	$	122,000		$	111,800		$	101,600
102		91,400			86,300			111,700
103		60,900			40,600			50,800
104		30,500			28,500			50,900

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.