Question
Cost per Market Group No. Manufacturer No. of Units Unit Total Cost per Unit Total Market Smartphone case General Tech 900 $4 $3,600 $10 $9,000
Cost per
Market
Group No.
Manufacturer
No. of Units
Unit
Total Cost
per Unit
Total Market
Smartphone case
General Tech
900
$4
$3,600
$10
$9,000
Notepad case
General Tech
600
18
10,800
17
10,200
Subtotal - General Tech
$14,400
$19,200
Smartphone case
Pacific Base
650
10
$6,500
7
$4,550
Notepad case
Pacific Base
350
17
5,950
20
7,000
Subtotal - Pacific Base
$12,450
$11,550
Total
$26,850
$30,750
Requirement b. Conduct a lower-of-cost-or-market test for
CaseitUp
assuming that it uses the individual-item approach for LCM computations. (Enter a "0" if no LCM loss adjustment is required.)
Assuming Case-it-Up uses the individual-item approach for LCM computations, it will record a |
|
loss adjustment. |
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