Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows:

Product Total Cost Total Net Realizable Value 101 $ 158,000 $ 119,000 102 109,000 129,000 103 79,000 69,000 104 49,000 69,000

Required: 1. Determine the carrying value of inventory at December 31, 2018, 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.