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 Per Unit Units Cost Market $100 102 337 S 92 252 113

image text in transcribed
image text in transcribed
A physical Inventory of Liverpool Company taken at December 31 reveals the following Per Unit Units Cost Market $100 102 337 S 92 252 113 318 88 196 54 97 43 Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers 472 283 204 152 95 312 127 86 324 72 es 177 162 99 86 107 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 question by entering your answers in the tabs below. Required Required 1 2 Calculate the lower of cost or market for the inventory applied separately to each item. Per Unit Total LCM applied to: Item Units Cost Market Individual Cost Market Items Car audio equipment Speakers 337 $ 92 $ 100 Stereos 252 113 102 Amplifiers 318 88 97 Subwoofers 196 54 43 Security equipment Alarms 472 152 127 Locks 283 95 86 Cameras 204 312 324 Binocular equipment Tripods 177 72 86 Stabilizers 162 99 107 Total Required Required 2 > A physical inventory of Liverpool Company taken at December at reveals the following Per Unit Units Cost Market 337 S 92 252 113 318 BH 196 54 5100 102 92 43 Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarm Locks Cameras Binocular equipment Tripods Stabiliters 472 283 204 152 95 312 127 86 324 177 162 72 99 86 102 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 question by entering your answers in the tabs below. Required Required 1 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Contemporary Financial Management

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

10th Edition

978-0324289114, 0324289111

Students also viewed these Accounting questions

Question

Were any of the authors students?

Answered: 1 week ago