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	$	146,000		$	113,000
102		108,000			123,000
103		73,000			63,000
104		43,000			63,000

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.

Product	Cost	NRV	Inventory Value
101
102
103
104

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

Journal entry worksheet

• Record any necessary year-end adjusting entry assuming that inventory write-downs are common for Tatum Company.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1