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

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

ProductTotal CostTotal
Replacement Cost		Total Net
Realizable Value
101$136,000
$124,400
$113,000
102
101,400

95,700

123,900
103
67,500

45,000

56,600
104
34,100

31,900

57,100


The normal profit is 20% of total cost.
 
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.
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Intermediate-Accounting-I   
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