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

follows:

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 $1.$

Complete this question by entering your answers in the tabs below.

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.

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 $1.$