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: Net Realizable Value Item RSK-89013 LKW-91247 QEC-57429 Required: Units Cost per Unit $38 460 329 462 49 25 $44 45 (Inventory adjustment to market value) 33 1. Compute the carrying value of the ending inventory using the lower of or market method applied on an item-by-item basis. $ 2. Prepare the journal entry required to value the inventory at lower of cost or market.

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: 1. Compute the carrying value of the ending inventory using the lower of cost or market method applied on an item-by-item basis. 4. 2. Prepare the journal entry required to value the inventory at lower of cost or market