Chapter 9 In-Class Exercises Exercise 9.2 Date Inventory LIFO Cost Replacement Cost Selling Price Cost to Dispose/Sell = 20% of selling price Normal profit = 10% of selling price $9.00 $8.50 $10.00 $2.00 $1.00 Required: If we currently have 10 pieces of inventory on hand, what adjusting journal entry (if any) is required assuming the company utilizes the Lower of Cost or Market (LCM) method? Cost Replacement cost (A) Ceiling (B) Floor (C) Middle of A,B,C 1 Record write down to LCM (if necessary) dr. cr