LOWER OF COST OR MARKET Shaw Systems sells a limited line of specially made products, using television advertising campaigns in large cities. At year-end, Shaw has the following data for its inventory:

Number of Units Historical Cost per Unit Market Value per Unit Phone 600 $ 24 $ 20 Stereo 180 177 190 Electric shaver 220 30 35 MP3 alarm clock 430 26 25 Handheld game system 570 40 19 Required:

Compute the carrying value of the ending inventory using the lower of cost or market rule applied on an item-by-item basis.

Exercise