Problem 6-13A Lower of cost or NRV A physical inventory of Liverpool Company taken at December 31 reveals the following. Inventory Items Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Total Alarms Locks Cameras Binocular equipment Tripods Stabilizers LO6 Units 345 260 326 204 Per Unit 185 170 Cost $ 90 111 86 52 NRV 480 150 125 291 93 84 212 310 322 $98 100 95 41 70 84 97 105 CHECK FIGURE: $273,054 2. If the market amount is less than the recorded cost of the inventory, then record the LCNRV adjustment to the Merchandise Inventory account. Required 1. Compute the lower of cost or NRV for the inventory applied separately to each item.

Problem 6-13A Lower of cost or NRV [ LO6 A physical inventory of Liverpool Company taken at December 31 reveals the following. Required 1. Compute the lower of cost or NRV for the inventory applied separately to each item. CHECK FIGURE: $273,054 2. If the market amount is less than the recorded cost of the inventory, then record the LCNRV adjustment to the Merchandise Inventory account