Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows:

Product Total Cost Total Net Realizable Value

101 $ 156,000 $ 118,000

102 108,000 128,000

103 78,000 68,000

104 48,000 68,000

Required:

1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products.

2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.

rule is applied to individual products.

Product	Cost	NRV	Inventory Value
101	$156,000	$118,000
102	108,000	128,000
103	78,000	68,000
104	48,000	68,000
	$390,000		$0