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

Product		Quantity		Unit Cost				Unit Replacement Cost				Unit Selling Price
A		500		$	20			$	22			$	26
B		1,000			25				21				28
C		600			13				12				18
D		1,000			17				14				16
E		500			24				22				23

The cost to sell for each product consists of a 20 percent sales commission. The normal profit percentage for each product is 25 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products.(Do not round intermediate calculations.)

Product (units)	RC	NRV	NRV-NP	Market	Cost	Inventory Value
A (500)
B (1000)
C (600)
D (1000)
E (500)
Total				$	$	$

2a. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory. (Do not round intermediate calculations.

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	Inventory carrying value $

2b. Assuming inventory write-downs are usual business practice for Forester, record any necessary year-end adjusting entry.(Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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