Requirement c. Conduct a lower-of-cost-or-market test for Best Print assuming that it uses the group-by-group approach for LCM computations Print Assuming Best Print uses the group-by-group approach for LCM computations, it will record a $ loss adjustment Requirement d. Prepare the journal entry needed to adjust Best Print's inventory to a lower-of-cost-or-market (LCM) basis assuming that LCM is applied to individual items. Best Print uses the indirect approach to record any adjustments to LCM. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Year-end (1) (2) (3) 1: Data Table Model No. Group No. No. 100 Black Laser Printer No. 100 Black Toner No. 200 Color Laser Printer No. 200 Color Toner LP100 BT100 CP200 CT200 CRC No. of Units SP Disposal NPM Cost $ 182 2,700 $ 218 $ 21 $ 43 $ 173 47 2,300 62 15 16 52 203 4,000 237 22 23 192 74 3,450 148 12 28 62 2: More Info Definitions: CRC SP = Current Replacement Cost = Selling Price = Costs of Completion and Disposal = Normal Profit Margin DISPOSAL NPM a. 3: Requirements Conduct a lower-of-cost-or-market test for Best Print assuming that it uses the total inventory approach for LCM computations. b. Conduct a lower-of-cost-or-market test for Best Print assuming that it uses the individual-item approach for LCM computations. c. Conduct a lower-of-cost-or-market test for Best Print assuming that it uses the group-by-group approach for LCM computations. d. Prepare the journal entry needed to adjust Best Print's inventory to a lower-of-cost-or-market (LCM) basis assuming that LCM is applied to individual items. Best Print uses the indirect approach to record any adjustments to LCM. (Assume that Best Print Company is U.S. GAAP reporter.) Requirement c. Conduct a lower-of-cost-or-market test for Best Print assuming that it uses the group-by-group approach for LCM computations Print Assuming Best Print uses the group-by-group approach for LCM computations, it will record a $ loss adjustment Requirement d. Prepare the journal entry needed to adjust Best Print's inventory to a lower-of-cost-or-market (LCM) basis assuming that LCM is applied to individual items. Best Print uses the indirect approach to record any adjustments to LCM. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Year-end (1) (2) (3) 1: Data Table Model No. Group No. No. 100 Black Laser Printer No. 100 Black Toner No. 200 Color Laser Printer No. 200 Color Toner LP100 BT100 CP200 CT200 CRC No. of Units SP Disposal NPM Cost $ 182 2,700 $ 218 $ 21 $ 43 $ 173 47 2,300 62 15 16 52 203 4,000 237 22 23 192 74 3,450 148 12 28 62 2: More Info Definitions: CRC SP = Current Replacement Cost = Selling Price = Costs of Completion and Disposal = Normal Profit Margin DISPOSAL NPM a. 3: Requirements Conduct a lower-of-cost-or-market test for Best Print assuming that it uses the total inventory approach for LCM computations. b. Conduct a lower-of-cost-or-market test for Best Print assuming that it uses the individual-item approach for LCM computations. c. Conduct a lower-of-cost-or-market test for Best Print assuming that it uses the group-by-group approach for LCM computations. d. Prepare the journal entry needed to adjust Best Print's inventory to a lower-of-cost-or-market (LCM) basis assuming that LCM is applied to individual items. Best Print uses the indirect approach to record any adjustments to LCM. (Assume that Best Print Company is U.S. GAAP reporter.)
