Lower of Cost or Market 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 Phone Stereo Electric shaver MP3 alarm clock Handheld game system Required: Number of Units 600 180 220 430 570 Historical Cost per Unit $24 177 30 26 40 Selling Price per Unit $10 190 35 25 19 Disposal Costs $4 9 3 2 1. Compute the carrying value of the ending inventory using the lower of cost or net realizable value rule applied on an item-by-item basis. 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.

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