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.

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 Inventory Product Cost NRV NRV - NP Market Value 101 102 103 104 Totals 122,000 91,400 60,900 30,500 111,800S 101,600 86,300111,700 0,60050,800 28,50050,900 $ 101,600 6,3086,300 40,600 40,600 30,500 $ 259,000 101,600 304,800 Required 1Required 2 Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Required 1 Required 2