Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Replacement Cost Total Net Realizable Value $ 115,400 $ 104,800 88,900 115,100 41,800 29,500 Product 101 102 103 104 The normal profit is 40% of total cost Total Cost $ 126,000 94,200 62,700 31,500 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Product Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Replacement cost 101 102 103 104 Totals $ Total Cost $ 126,000 $ 94,200 62,700 31,500 314,400 115,400 $ 88.900 41,800 29,500 52,400 52,700 NRV 104,800 115,100 52,400 52,700 Required 1 NRV minus NP Market Required 2 > Inventory Value $ 0

Tatum Company has four products in its inventory. Information about ending inventory is as follows: The normal profit is 40% 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. Complete this question by entering your answers in the tabs below