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 460 $38 $44 LKW-91247 329 49 45 QEC-57429 462 25 33 Required: 1. Compute the carrying value of the ending inventory using the lower of cost 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. Cost of Goods Sold Inventory (Inventory adjustment to market value)