Lower of Cost or Net Realizable Value The accountant for Davidson, Inc. prepared the following analysis of its inventory at year end: Item Units Cost per Unit Net Realizable Value RSK-89013 450 $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 net realizable value rule applied on an item-by-item basis. 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.