The accountant for Murphy Company prepared the following analysis of its inventory at year-end: Required: 1. Compute

Question:

The accountant for Murphy Company prepared the following analysis of its inventory at year-end:

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.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...