Problem $6-5$B

Lower of cost or market

P$2$

burs, gamenut bath

Tha$18$

bse$4$

Check

$(1)$ $$580,054$

A physical inventory of Office Necessities Company taken at December $31$ reveals the following.

Required

Compute the lower of cost or market for the inventory applied separately to each item.

If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment

to the Merchandise Inventory account.