Shaw Systems sells a limited line of specially made products, using television advertising campaigns in large cities. At year end, Shaw has the following data for its inventory: Item Number of Units Historical Cost per Unit Selling Price per Unit Disposal Costs Phone 625 $24 $25 $5 Stereo 180 177 200 10 Electric shaver 215 30 31 3 MP3 alarm clock 450 26 27 2 Handheld game system 570 40 45 3 Required: 1. Compute the carrying value of the ending inventory using the lower of cost or market rule applied on an item-by-item basis. 2. Prepare the journal entry required to value the inventory at lower of cost or market.