Question: Merediths Appliance Store has the following data for the items in its inventory at the end of the accounting period: Required: 1. Compute the carrying

Meredith€™s Appliance Store has the following data for the items in its inventory at the end of the accounting period:

Required:
1. Compute the carrying value of Meredith€™s ending inventory using the lower of cost or market rule applied on an item-by-item basis.
2. Prepare the journal entry required to value the inventory at lower of cost or market.
3. What is the conceptual justification for valuing inventory at the lower of cost or market?

Number of Units Historical Cost per Unit 194 Window air conditioner Dishwasher Refrigerator Microwave Washer (clothingl Dryer (clothing) Market Value per Unit $110 380 405 180 248 245 30 27 415 215 195 197 32

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