Per Unit Units Cost Market 345 $100 260 121 326 96 204 62 $108 110 105 51 Item Car audio equipment Speakers Stercos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers 480 291 212 160 103 320 135 94 332 185 170 80 107 94 115 Required: 1. Calculate 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. Complete this question by entering your answers in the tabs below. Total | Required Required 2 Calculate the lower of cost or market for the inventory applied separately to each item. Per Unit LCM applied to: Item Units Cost Market Cost Market Individual Items Car audio equipment Speakers 345 $ 100 S 108 Stereos 260 121 110 Amplifiers 326 96 105 Subwoofers 204 62 51 Security equipment Alarms 480 160 135 Locks 291 103 94 Cameras 212 332 Binocular equipment Tripods 185 80 94 Stabilizers 170 107 115 Total 320 Navajo Company's financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Year 1 ending inventory is understated by $62,000, and Year 2 ending inventory is overstated by $32,000. For Year Ended December 31 Year 1 Year 2 Year 3 Cost of (a) goods sold $ 737,000 $ 967,000 $ 802,000 (b)Net income 280,000 287,000 262,000 Total (C) current 1,259,000 1,372,000 1,242,000 assets equity 1,399,000 1,592,000 1,257,000 (d, Total Required: 1. For each key financial statement figure-la. (0.4. and (dbelow-prepare a table to show the adjustments necessary to correct the reported amounts. 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? Required Required 1 2 For each key financial statement figure-(a), (b), (c), and (d) below-prepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted must be entered with a minus sign.) Show less Year 1 Year 2 Year 3 Cost of goods sold: Reported amount Adjustments 12/31/Year 1 error for: 12/31/Year 2 error Corrected amount Net income: Reported amount Adjustments 12/31/Year 1 error for: 12/31/Year 2 error Corrected amount Total current assets: Reported amount Adjustments 12/31/Year 1 error for: 12/31/Year 2 error Corrected amount Equity: Reported amount Adjustments 12/31/Year 1 error for: 12/31/Year 2 error Corrected amount Required Required 2 >