Decker Company has five products in its inventory. Information about the Decembe

Decker Company has five products in its inventory. Information about the December 31 2011 inventory follows.Unit Replacement SellingProduct/ Quantity/ Unit Cost /unit replacement Cost/ unit selling Price_____A /1000 /$10/ $12 $16B /800 /15/ 11/ 18C/ 600 /3/ 2/ 8D/ 200/ 7 /4/ 6E /600 /14 /12 /13The
selling cost for each product consists of a 15 percent sales
commission. The normal profit percentage for each product is 40 percent
of the selling price.Required:1. Determine the balance sheet
inventory carrying value at December 31 2011 assuming the LCM rule is
applied to individual products.2. Determine the balance sheet
inventory carrying value at December 31 2011 assuming the LCM rule is
applied to the entire inventory. Also assuming that Decker recognizes
an inventory write-down as a separate income statement item determine
the amount of the loss.