Lower of Cost or Net Realizable Value The accountant for Murphy Company prepared the following analysis of its inventory at year end: Cost per Unit Net Realizable Value $38 49 25 Item RSK-89013 LKW-91247 QEC-57429 Required: Units 530 329 462 $44 45 33 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. Cost of Goods Sold 88 Inventory

Lower of Cost or Net Realizable Value The accountant for Murphy Compeny 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 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 nec realizable value. If an amount box does not require an entry, leave it blank