1. Compute the lower of cost or market for the Inventory applied separately to each item....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Compute 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 Merchandi account. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the lower of cost or market for the inventory applied separately to each item. Per Unit Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers Total Units 345 260 326 204 480 291 212 185 170 Cost Market $ 90.00 $98.00 111.00 100.00 86.00 95.00 52.00 41.00 150.00 125.00 93.00 84.00 310.00 322.00 70.00 97.00 84.00 105.00 < Required 1 Cost Total Market Required 2 > LCM applied to: Individual Items Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers Units 345 260 326 284 480 291 212 185 170 Cost $.90 111 86 52 150 93 310 70 97 Market $ 98 100 95 41 125 84 322 84 105 Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers View transaction list Units 345 260 326 284 Record LCM adjustment. 480 291 212 Note: Enter debits before credits. Date December 31 185 170 Record entry Journal entry worksheet < 1 Cost $90 111 86 52 150 93 310 Required: 1. Compute 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. 70 97 Complete this question by entering your answers in the tabs below. Clear entry Required 1 Required 2 If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. Market $98 100 95 41 General Journal 125 84 322 84 105 < Required 1 Debit Credit View general journal Required 2 > 1. Compute 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 Merchandi account. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the lower of cost or market for the inventory applied separately to each item. Per Unit Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers Total Units 345 260 326 204 480 291 212 185 170 Cost Market $ 90.00 $98.00 111.00 100.00 86.00 95.00 52.00 41.00 150.00 125.00 93.00 84.00 310.00 322.00 70.00 97.00 84.00 105.00 < Required 1 Cost Total Market Required 2 > LCM applied to: Individual Items Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers Units 345 260 326 284 480 291 212 185 170 Cost $.90 111 86 52 150 93 310 70 97 Market $ 98 100 95 41 125 84 322 84 105 Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers View transaction list Units 345 260 326 284 Record LCM adjustment. 480 291 212 Note: Enter debits before credits. Date December 31 185 170 Record entry Journal entry worksheet < 1 Cost $90 111 86 52 150 93 310 Required: 1. Compute 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. 70 97 Complete this question by entering your answers in the tabs below. Clear entry Required 1 Required 2 If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. Market $98 100 95 41 General Journal 125 84 322 84 105 < Required 1 Debit Credit View general journal Required 2 >
Expert Answer:
Answer rating: 100% (QA)
To calculate the lower of cost or market LCM for each item in the inventory we compare the cost and ... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
Students also viewed these accounting questions
-
Hemandez Company issued $380,000, 7%, 10-year bonds on January 1, 2017, for $407,968. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1....
-
A physical inventory of Liverpool Company taken at December 31 reveals the following. Required 1. Calculate the lower of cost or market for the inventory applied separately to each item. 2. If the...
-
A physical inventory of Helmke Company taken at December 31 reveals the following. Required 1. Calculate the lower of cost or market for the inventory applied separately to each item. 2. If the...
-
Two thousand kg of water, initially a saturated liquid at 150C, is heated in a closed, rigid tank to a final state where the pressure is 2.5 MPa. Determine the final temperature, in C. the volume of...
-
Find all LFTS without fixed points in the finite plane.
-
A _______________is a document that contains results of various risk management processes, often displayed in a table or spreadsheet format. A. risk event B. trigger C. risk register D. risk...
-
Match each of the objectives listed, 1 through 15, with its most appropriate perspective: financial, internal business, customer, or learning and growth. In addition, for each objective listed,...
-
Treasury Stock Transactions The Stockholders Equity category of Little Joes balance sheet on January 1, 2010, appeared as follows: Common stock , $5 par, 40,000 shares issued and outstanding...
-
Sally needs to be able to deliver customer sales data to multiple departments in real time. Which feature of her company's new accounting software will enable her to do that? A. electronic...
-
Julie Whiteweiler made $930 this week. Only social security (fully taxable) and federal income taxes attach to her pay. Whiteweiler contributes $100 each week to her company's 401(k) plan and has $25...
-
1.1.Calculate; 1.1.1The stake value of BC5 (14) Question 1 The following horizontal and vertical alignments apply to a rural road; Horizontal alignment Point EC3 P14 P15 P16 P17 P18 Vertical...
-
Which kind of veto causes a bill to not become a law if the president does not sign the bill within ten days and Congress has adjourned within that time? Explain
-
The price of a certain stock increases from $25.00 to $40.00. Compute the percent increase in the stock price. The original price of the stock is $40.00. The price decreases by 50%. What is the...
-
Assume that the expected future dividends (D) at end of periods 1,2, and 3, as well as the expected future price (P) at end of period 3 for a stock are as follows: D1 = $1.20, D2 = $1.40, D3 = $1.55,...
-
A local finance company quotes an interest rate of 16.6 percent on one-year loans. So, if you borrow $31,000, the interest for the year will be $5,146. Because you must repay a total of $36,146 in...
-
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At...
-
sExplore the relationship between deadlock and resource management policies. How can proper resource management help in reducing the likelihood of deadlock in large-scale systems?
-
Why do CPA firms sometimes use a combination of positive and negative confirmations on the same audit?
-
Beginning accounts receivable were $32,350. All sales were on account and totaled $286,480. Cash collected from customers totaled $276,750. Required: Calculate the ending accounts receivable balance.
-
Jason Kemp was torn between conflicting emotions. On the one hand, things were going so well. He had just completed six months as the assistant financial manager in the Electronics Division of...
-
Rogers Machinery Company borrowed $400,000 on June 1, with a three-month, 7 percent, interest-bearing note. Required: 1. Record the borrowing transaction. 2. Record the repayment transaction.
-
Lauren Inc. makes three products that can be sold at split-off or processed further and then sold. The joint cost for April is \(\$ 1,080,000\). The number of ounces in a bottle of each product is:...
-
Wear Art produces precut fabrics for three products: dresses, jackets, and blouses. Joint cost is allocated on the basis of relative sales value at split-off. The company can choose to process each...
-
Sell or process further Winn Mills processes cotton in a joint process that yields two joint products: fabric and yarn. May's joint cost is \(\$ 120,000\), and the sales values at split-off are \(\$...
Study smarter with the SolutionInn App