See attachment for full assignment.

Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows.

ProductQuantityUnit

CostUnit

Replacement

CostUnit

Selling

PriceA1,000$26$28$32B500312734C900191824D900232022E800302829

The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the selling price.

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.Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory.

3.Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.

Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products.(Do not round intermediate calculations.)

Product (units)RCNRVNRV-NPMarketCostInventory carrying valueA (1000)$

28,000B (500)13,500 C (900)16,200D (900)18,000E (800)22,400 Total$

0$

0$

0