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

Inventory, by Product Category	Quantity	Per Unit Cost	Net Realizable Value
Tools:
Hammers	120	$ 4.90	$ 5.40
Saws	190	9.90	8.90
Screwdrivers	290	1.90	2.50
Paint products:
1-gallon cans	490	5.90	4.90
Paint brushes	120	3.90	4.40

Required:

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.

Assuming inventory write-downs are common for Ace, record any necessary year-end adjusting entry for each of the LCNRV applications in requirement 1.