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Lower of Cost or Net Realizable Value Item The accountant for Murphy Company prepared the...

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Accounting

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Lower of Cost or Net Realizable Value Item The accountant for Murphy Company prepared the following analysis of its inventory at year end Units Cost per Unit Net Realizable Value RSK-89013 510 $38 $14 LKW.91247 329 49 45 QLC-574 279 462 25 33 Required: 1. Compute the carrying value of the ending inventory using the lower of cost of net realizable value rule applied on an item-bytom basis 52,491 x Check My Word 1 Comoare actual cost of inventory to its mart The lower amount is the value of inventory. It market value is lower the entory accounts 2. Prepare the journal entry required to value the inventory at lower of cost or net realizable value. If an amount box does not require an entry, leave it blank Cost of Goods Sold 5.440 X Inventory 5.440 X

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