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

Required:
1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or net realizable value (LCNRV) 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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Total Net Realizable Value $100,000 110,000 50,000 50,000 Total Cost Product 101 102 103 104 $120,000 90,000 60,000 30,000