Yang Manufacturing sells a limited line of specially made products, using television advertising campaigns in large cities. At year-end, Yang has the following data Historical Cost per Number of Market Value per Item Unit Units Unit Phone 600 $24 $13 Stereo 180 177 190 Electric shaver 220 30 35 MP3 alarm clock 430 26 25 Handheld game 570 19 40 system 1. Compute the carrying value of the ending inventory using the lower of cost or market rule applied on an item-by-item basis. 67840 Hide Feedback Correct Check My Work Feedback Set up a lower of cost or market analysis. Item-by-item - lower of either cost or market goes in LCM column. Compare actual cost of inventory to LCM. If the adjusted is lower, then the inventory account Hide 2. Prepare the journal entry required to value the inventory at lower of cost or market. Cost of Goods Sold Inventory Reduce inventory to market value