CHAPTER 9 Inventories: Additional Issues 493 [This is a variation of E 9-3, modified to focus on the lower of cost or market.] Tatum Company has four products -in its inventory. Information about the December 31, 2021, inventory is as follows: Total Net Realizable Total Total Replacement Product Cost Cost 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.