Lower of Cost or Net Realizable Value Sue Stone, the president of Tippecanoe Home Products, has prepared the following information for the company's television inventory at the end of the year: FIFO Cost Selling Price Disposal Model Quantity per Unit per Unit Costs T-260 11 $200 $480 $35 S-256 24 325 330 30 R-193 18 210 250 20 Z-376 12 285 290 40 240 Required: 1. Determine the carrying amount of the inventory using lower of cost or net realizable value applied on an item-by-item basis. 20,980 X Feedback Check My Work 1. Compare actual cost of inventory to its market value. The lower amount is the value of inventory. If market value is lower, the inventory account is adjusted. 2. Prepare the journal entry required to value the inventory at lower of cost or net realizable value. If an amount box does not require an entry, leave it blank. Inventory Sales Revenue