Truman Company has four products, A, B, C, and D. Below is its inventory information as of December 31, 2013.

Truman Company has four products, A, B, C, and D. Below is its inventory information as of December 31, 2013.

Product              Sales Price               Inventory Cost             Replacement Cost          Sales Commission

A                             500                         470                             460                               50

B                             540                        450                              430                               60

C                             900                         830                             610                               80

D                           1200                         960                           1000                              130

The normal gross profit percentage for each product is 20% of the sales price.

Required:

a.  Determine the balance sheet inventory carrying value as of December 31, 2013 assuming the LCM rule is applied to individual product.

b.  Determine the balance sheet inventory carrying value as of December 31, 2013 assuming the LCM rule is applied to entire inventory.