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

Product	Total Cost			Total Replacement Cost			Total Net Realizable Value
101	$	122,000		$	111,800		$	101,600
102		91,400			86,300			111,700
103		60,900			40,600			50,800
104		30,500			28,500			50,900

The normal gross profit percentage is 30% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2018, 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.

Please use the chart below to answer question 1:

Required 1Required2 Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products Replacement cost Inventory Value NRV NRV - NP Market Product Cost 101 102 103 104 Totals $ 111,800$ 101,600 86,300111,700 0,60050,80 28,50050,900 86,300 40,600 91,400 60,900 30,500 304,800 $ 126,900 Required Required 2