The accountant for Murphy Company prepared the following analysis of its inventory at year-end:

Required:
1. Compute the carrying value of the ending inventory using the lower of cost or market method applied on an item-by-item basis.
2. Prepare the journal entry required to value the inventory at lower of cost or market.

Transcribed Image Text:

tem RSK-89013 LKW 91247 QEC-57429 Units 500 329 462 Cost per Unit $36 49 29 Market Value $44 41