Answer:
Tatum Company
1. The carrying value of inventory at December 31, 2021 is:
$342,000
2. Adjusting Journal Entry:
Debit Inventory write-downs $47,000
Credit Inventory $47,000
To record the write-down of inventory value to LCNRV.
Explanation:
a) Data and Calculations:
Product   Total Cost        Total Net Reali-   LCNRV        Write-downs
                                           zable Value 
101           $ 154,000          $ 117,000          $ 117,000        $ 37,000
102               111,000            127,000              111,000            0
103               77,000             67,000              67,000            10,000
104              47,000              67,000              47,000            0
Total      $ 389,000        $ 378,000        $ 342,000        $ 47,000