Decker Company has five products in its inventory. Information
about the December 31, 2018, inventory follows.
The cost to sell for each product consists of a 10 percent sales
1. Determine the carrying value of inventory at
December 31, 2018, assuming the lower of cost or net realizable
value (LCNRV) rule is applied to individual products.
2a. Determine the carrying value of inventory at
December 31, 2018, assuming the LCNRV rule is applied to the entire
2b. Assuming the inventory write-downs are usual
business practice for Decker, record any necessary year-end