Tatum Company has four products in its inventory. Information about ending inventory is as follows:

Product Total Cost Total Replacement Cost Total Net Realizable Value

$101$ $ $144,000$ $ $131,600$ $ $119,600$

$102107,200101,200131,000$

$10371,40047,60060,000$

$10436,20033,80060,600$

The normal profit is $30\%$ of total cost.

Required:

Determine the carrying value of inventory assuming the lower of cost or market $($LCM$)$ rule is applied to individual products.

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

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Determine the carrying value of inventory assuming the lower of cost or market $($LCM$)$ rule is applied to individual products.