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

Product	Total Cost	Total Replacement Cost	Total Net Realizable Value
101	$120,000	$100,000	$100,000
102	$90,000	$85,000	$110,000
103	$60,000	$40,000	$50,000
104	$30,000	$28,000	$50,000

The normal profit is 25% 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.