Lower of Cost or Net Realizable Value

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

Item	Units	Cost per Unit	Net Realizable Value
RSK-89013	600	$38		$47
LKW-91247	420	47		40
QEC-57429	510	26		32

Required:

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1.  Compute the carrying value of the ending inventory using the lower of cost or net realizable value rule applied on an item-by-item basis.
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2.  Prepare the journal entry required to value the inventory at lower of cost or net realizable value. If an amount box does not require an entry, leave it blank.