Decker Company has five products in its inventory. Information about the December 31, 2021, inventory follows.

The cost to sell for each product consists of a 15 percent sales commission.

Required:1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products.

2. Determine the carrying value of inventory at December 31, 2021, assuming the LCNRV rule is applied to the entire inventory.3. Assuming inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.

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Unit Selling Price Unit Product Quantity Cost $10 $16 1,000 B 800 15 18 600 3 D 200 600 14 13