The products of ABC can be grouped into two major categories: products A1 and A2 are in Category A, while products B1 and B2 are in category B. Assume the following information regarding ABCs inventories for year 2021:

ABC employs the weighted-average cost method. Sales commissions and transportation costs average 10 % of selling price.

Required:

Determine the amount of ending inventory and prepare the year-end adjusting entry to write-down inventory (if necessary), assuming that ABC applies the lower of cost to net realizable method to the following:

- Individual item

- Major categories

- Total inventory

Additional information: no inventory write-down has been recognized in previous reporting periods.

Product A1 Product B1 TransactionBeginninginventoryPurchaseNo.1SaleNo.1SaleNo.2PurchaseNo.2PurchaseNo.3SaleNo.3PurchaseNo.4NumberofUnits600400500100300400500300UnitCost2020242322UnitPrice3030 Selling price as at December 31 , 22 2021 Product B2 TransactionBeginninginventoryPurchaseNo.1PurchaseNo.2SaleNo.1PurchaseNo.3SaleNo.2PurchaseNo.4SaleNo.3SaleNo.4PurchaseNo.5NumberofUnits100200300500400350500200150200UnitCost403838363436UnitPrice Selling price as at December 31, 14 2021