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: Item Number of Units Historical Cost per Unit Market Value per Unit Phone 600 $24 $22 Stereo Electric shaver MP3 alarm clock Handheld game system Required: 1. Compute the carrying value of the ending inventory using the lower of cost or market rule applied on an item-by-item basis. Feedback 2. Prepare the journal entry required to value the inventory at lower of cost or market. Cost of Goods Sold Inventory (Reduced inventory to market value)