Decker Company has five products in its inventory. Information about the December 31, 2018, inventory follows….

Decker Company has five products in its inventory. Information
about the December 31, 2018, inventory follows.

Product

Quantity

Unit
Cost

Unit
Selling
Price

A

1,100

$
12

$
18

B

900

17

20

C

700

3

8

D

300

7

6

E

700

16

15

The cost to sell for each product consists of a 10 percent sales
commission.

Required:
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
inventory.
2b. Assuming the inventory write-downs are usual
business practice for Decker, record any necessary year-end
adjusting entry.