Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows:   Product Total Cost Total Replacement Cost Total Net Realizable Value 101 $ 163,000   $ 148,700   $ 135,100   102   120,800     114,000     147,600   103   80,400     53,600     67,900   104   41,100     38,400     69,000     The normal profit is 40% 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.

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A: Answer:  With formula:

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