What does NRV-NP mean. What numbers do you calulate to get this number?

Tatum Company has four products in its inventory. Information about ending inventory is as follows: Product 101 102 103 104 Total Cost Total Replacement Cost Total Net Realizable Value $100,000 85,000 40,000 28,000 $120,000 90,000 60,000 30,000 $100,000 110,000 50,000 50,000 The normal profit is 25% of total cost. Required: 1. Determine the carrying value of inventory 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.

Tatum Company has four products in its inventory. Information about ending inventory is as follows: The normal profit is 25% of total cost. Required: 1. Determine the carrying value of inventory 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. \begin{tabular}{|c|c|c|c|c|c|c|} \hline Product & Total Cost & \begin{tabular}{c} Replacement \\ Cost \end{tabular} & NRV & NRV-NP & Market & \begin{tabular}{c} Inventory \\ Value \end{tabular} \\ \hline 101 & $120,000 & $100,000 & $100,000 & $70,000 & $100,000 & $100,000 \\ \hline 102 & 90,000 & 85,000 & 110,000 & 87,500 & 87,500 & 87,500 \\ \hline 103 & 60,000 & 40,000 & 50,000 & 40,000 & 40,000 & 40,000 \\ \hline 104 & 30,000 & 28,000 & 50,000 & 42,500 & 42,500 & 30,000 \\ \hline Totals & $300,000 & & & & & $257,500 \\ \hline \end{tabular}