Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018 year-end inventory is as follows:

Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to
(a) Individual products,
(b) Product categories,
(c) Total inventory.
2. Assuming that the company reports an inventory write-down as a line item in the income statement, for each of the LCNRV applications determine the amount of the loss.

Inventory, by Product Category Tools: Net Realizable Value Per Unit Cost Hammers Saws Screwdrivers $5.00 103x 100 $5.50 9.00 2.60 300 2.00 Paint products: 1-gallon cans Paint brushes 6.00 4.00 100 4.50