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; Item Units Cost per Unit Net Realizable Value RSK-89013 550 $38 $44 LKW-91247 329 49 45 462 25 33 QEC-57429 Required: 1. Compute the carrying value of the ending inventory using the lower of cost on market method applied on an item-by-item basis, 2. Prepare the fournal entry required to value the inventory at lower of cost or market. Cost of Goods Sold Inventory (Inventory adjustment to market value)