ornerstone Exercise 6-26 (Algorithmic) Lower of Cost or Market The accountant for Murphy Company prepared the following analysis of its inventory at year end: Item Units Net Realizable Value Cost per Unit $38 520 $44 RSK-89013 LKW-91247 QEC-57429 329 45 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. dropdown (Inventory adjustment to market value) Cornerstone Exercise 6-26 (Algorithmic) 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 RSK-89013 LKW-91247 520 Net Realizable Value $44 329 462 QEC-57429 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. STI 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)