A physical inventory of Liverpool Company taken at December 31 reveals the following.Itemcar audio equipmentSpeakersStereosAmplifiersSubwoofersSecurity equipmentAlarmsLocksCamerasBinocular equipmentTripodsStabilizersUnits340255321199475286207180165Per UnitCost$95116915715598315527570102Market$ 103105100461308932789110Required:1. Compute 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 MerchandiseInventory account.Sincom122-122006 20

LCNRV stands for "Lower of Cost or Net Realizable Value." It is an accounting principle used to…

A physical inventory of Liverpool Company taken at December 31 reveals the following. Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers Units 340 255 321 199 475 286 207 180 165 Per Unit Cost $95 116 91 57 155 98 315 75 102 Market $ 103 105 100 46 130 89 327 89 110 Required: 1. Compute 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.

A physical inventory of Liverpool Company taken at December 31 reveals the following. Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers Units 340 255 321 199 475 286 207 180 165 Per Unit Cost $95 116 91 57 155 98 315 75 102 Market $ 103 105 100 46 130 89 327 89 110 Required: 1. Compute 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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