Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 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, and (c) total inventory.2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjusting entry for each of the LCNRV applications in requirement 1.

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Net Inventory, by Product Category Tools: Hammers Saws Screwdrivers Paint products: Per Unit Realizable Value Quantity Cost $ 5.00 $5.50 100 200 10.00 9.00 300 2.00 2.60 500 1-gallon cans Paint brushes 6.00 5.00 4.00 100 4.50