Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A physical inventory of Liverpool Company taken at December 31 reveals the following Units Per Unit Cost Harket $107 259 325 203 599 120 95

image text in transcribed
image text in transcribed
image text in transcribed
A physical inventory of Liverpool Company taken at December 31 reveals the following Units Per Unit Cost Harket $107 259 325 203 599 120 95 61 109 104 50 Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alors Locks Cameras Binocular equipment Tripods Stabilizers 134 429 290 211 159 102 319 331 93 184 169 79 106 Required: 1. Calculate the lower of cost or market for the inventory applied separately to each item. 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account Complete this questions by entering your answers in the tabs below. Required: Required 2 Calculate the lower of cost or market for the inventory applied separately to each item. Per Unit Total LCM applied to Units Cont Individual Market Cost Market Car audio equipment Speakers 3445 995 107 Stereos 259 120 109 Amplifiers 325 55 104 Complete this questions by entering your answers in the tabs below. Required 1 Required 2 Calculate the lower of cost or market for the inventory applied separately to each item. Per Unit Total LCM applied to: Individual Items Item Units Cost Market Cost Market 99 $ 107 344 $ 259 120 109 325 95 104 203 61 50 Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers 479 159 134 290 93 102 319 211 331 184 79 93 169 106 114 Total Round Required 2 > Required 1 Required 2 If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. View transaction list Journal entry worksheet 1 Record LCM adjustment. Note: Enter debits before credits General Journal Date Dec 31 Debit Credit Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing a risk based approach to conducting a quality audit

Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg

9th edition

9781133939160, 1133939155, 1133939163, 978-1133939153

More Books

Students also viewed these Accounting questions

Question

What does the PNR represent?

Answered: 1 week ago