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

Product	Total Cost			Total Replacement Cost			Total Net Realizable Value
101	$	142,000		$	129,800		$	118,000
102		105,800			99,900			129,300
103		70,500			47,000			59,200
104		35,700			33,300			59,700

The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2021, 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.