Tatum Company has four products in its inventory. Information about ending inventory is as follows:

Product	Total Cost	Total Replacement Cost	Total Net Realizable Value
101	$ 165,000	$ 150,500	$ 136,700
102	122,200	115,300	149,300
103	81,300	54,200	68,700
104	41,600	38,900	69,900

The normal profit is 25% of total cost.

Required:

1. Determine the carrying value of inventory 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.

95450	136700	136700
118750	?	?
48375	54200	54200
59500	59500	41600
		$232500