Valuing Inventory at Lower of Cost or Market Management of Tary Company reports the lollowing inventory uning UFD and apples the lower of cost ar maiket rule. price wale price- Required a. Delermine the inventory cost toreport on the balance sheet assurning that the company appllesthe loner of cost of macket rule to each inveritaryitem. b. Prepare the journal entry to apply the lower of cost or madet rule to inventory assuming that the company adjusts imventery directly and adjuts equ ty through cest of gocds sold