Cornerstone Exercise 6-26 (Algorithmic) Lower of Cost or Market The accountant for Murphy Company prepared the following analysis of its inventory at year end: Kequirea: 1. Compute the carrying value of the ending inventory using the lower of cost or market method applied on an item-by-item basis. \& x Feedback 7 Crock My Work 1. Compare actual cost of inventory to its makket value. The lower amount is the vasue of inventory. If market vilue is lower, the inventiory account is adjus 2. Prepare the journal entry required to value the inventory at lower of cost or market. (Inventory adjustment to market value) Fentide T cheok Mr Wook 2. Compare actual cost of inventory to its market value. The lower amount is the value of inventory. If markot vatue is lower, the inventory account is acluated. O more Check My Work uses remaining