Problem 6-5A Lower of cost or market LO P2 A physical inventory of Liverpool Company taken...

Transcribed Image Text:

Problem 6-5A Lower of cost or market LO P2 A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 342 $ 97 $105 Stereos 257 118 107 Amplifiers 323 93 102 Subwoofers 201 59 48 Security equipment Alarms 477 157 132 Locks 288 100 91 Cameras 209 317 329 Binocular equipment Tripods 182 77 91 Stabilizers 167 104 112 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. Required 1 Required 2 Calculate the lower of cost or market for the Inventory applied separately to each item. Per Unit Total Item Units Cost Market Cost Market Car audio equipment Speakers 342 $ 97 $ +A 105 $ 33,174 $ 35,910 Stereos 257 118 107 30,326 27,499 Amplifiers 323 93 102 30,039 32,946 Subwoofers 201 59 48 11,859 9,648 Security equipment Alarms 477 157 132 74,889 62,964 Locks 288 100 91 28,800 26,208 Cameras 209 317 329 66,253 68,761 Binocular equipment Tripods 182 77 91 14,014 16,562 Stabilizers 167 104 112 17,368 18,704 Total < Required 1 Required 2 LCM applied to: Individual Items Problem 6-5A Lower of cost or market LO P2 A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 342 $ 97 $105 Stereos 257 118 107 Amplifiers 323 93 102 Subwoofers 201 59 48 Security equipment Alarms 477 157 132 Locks 288 100 91 Cameras 209 317 329 Binocular equipment Tripods 182 77 91 Stabilizers 167 104 112 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. Required 1 Required 2 Calculate the lower of cost or market for the Inventory applied separately to each item. Per Unit Total Item Units Cost Market Cost Market Car audio equipment Speakers 342 $ 97 $ +A 105 $ 33,174 $ 35,910 Stereos 257 118 107 30,326 27,499 Amplifiers 323 93 102 30,039 32,946 Subwoofers 201 59 48 11,859 9,648 Security equipment Alarms 477 157 132 74,889 62,964 Locks 288 100 91 28,800 26,208 Cameras 209 317 329 66,253 68,761 Binocular equipment Tripods 182 77 91 14,014 16,562 Stabilizers 167 104 112 17,368 18,704 Total < Required 1 Required 2 LCM applied to: Individual Items