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A physical inventory of Liverpool Company taken at December 31 reveals the following. Item Units Per Unit Cost Market Car audio equipment Speakers 341 $
A physical inventory of Liverpool Company taken at December 31 reveals the following.
Item | Units | Per Unit | |
---|---|---|---|
Cost | Market | ||
Car audio equipment | |||
Speakers | 341 | $ 96 | $ 104 |
Stereos | 256 | 117 | 106 |
Amplifiers | 322 | 92 | 101 |
Subwoofers | 200 | 58 | 47 |
Security equipment | |||
Alarms | 476 | 156 | 131 |
Locks | 287 | 99 | 90 |
Cameras | 208 | 316 | 328 |
Binocular equipment | |||
Tripods | 181 | 76 | 90 |
Stabilizers | 166 | 103 | 111 |
Required:
- Compute the lower of cost or market for the inventory applied separately to each item.
- If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.
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