Problem $9-2($Algo$)$ Lower of cost or net realizable value; by product, category, and total inventory $[$LO$9-1]$

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 $100$ $ $4\mathrm{.}80$ $ $5\mathrm{.}30$

Saws $1809\mathrm{.}808\mathrm{.}80$

Screwdrivers $2801\mathrm{.}802\mathrm{.}40$

Paint products:

$1-$gallon cans $4805\mathrm{.}804\mathrm{.}80$

Paint brushes $1003\mathrm{.}804\mathrm{.}30$

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 $1.$