Exercise 6-10 Lower of cost or market LO P2

p-oinler it go Em Exercise 5-10 Lower of cost or market LO P2 Manrnez Company's endlng Invemory Includes the followrng Itema Elm-dual: Units Cans-I: 131:: Unit \"axial: PE: Unit: Eclmlet-s E 5 5 5D 5 55 Eat: 1'3' TE '3'2 She-=5 3-H 95 91 Uniform: '52 35 35 Compute me lower of cost or market for endlng Inventory applled separately to each product 7 It] Vibrant Companyr had $850,000 of sales In each of three consecutive years 20162018, and It purchased merchandlse costlng mam $500,000 In each of those years It also malntaIned a $250,000 physlcal Inventory from the beglnnlng to the end of that threeyear penod. In aocounung for memory, It made an error at the end of year 2010 that caused Its yearend 2016 Inventor).r to appear on Its statements as $230,000 rather than the correct $250,000. Exercise 6-12 Analysis of inventory errors LO A2 Required: 1. Determlne the correct amount of the company's gross prot In each of the years 20152013 2. Prepare comparative Income saternents to show the etfect of thls error on the company's cost of goods sold and gross prot for each of the years 20162018. Cunebeismmlshyenterilgmmsirlehelu-t. it so is Determine the correct amount of the company's grass profit in each of the years 26162913. ---_- - --- _ prot -_-_- Required 2 )