Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows:

Product	Total Cost			Total Replacement Cost			Total Net Realizable Value
101	$	156,000		$	142,400		$	129,400
102		115,800			109,300			141,500
103		77,100			51,400			65,000
104		39,300			36,700			65,900

Required: 1. Determine the carrying value of inventory at December 31, 2021, 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.