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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 354 269 335 213 489 300 221 194 179 Per Unit Cost $ 109 130 105 71 169 112 331 93 114 Market $ 117 120 114 61 159 102 341 103 124 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

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 354 269 335 213 489 300 221 194 179 Per Unit Cost $ 109 130 105 71 169 112 331 93 114 Market $ 117 120 114 61 159 102 341 103 124 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

FINANCIAL ACCOUNTING
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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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 354 269 335 213 489 300 221 194 179 Per Unit Cost $ 109 130 105 71 169 112 331 93 114 Market $ 117 120 114 61 159 102 341 103 124 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.
Transcribed Image Text: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 354 269 335 213 489 300 221 194 179 Per Unit Cost $ 109 130 105 71 169 112 331 93 114 Market $ 117 120 114 61 159 102 341 103 124 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.
Required 1 Required 2 Compute the lower of cost or market for the inventory applied separately to each item. Car audio equipment Speakers Stereos Amplifiers Subwoofers .. Item Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers Total Show Transcribed Text View transaction list < Units 1 Date December 31 489 300 221 354 $ 109 $ 269 130 335 105 213 71 194 179 Record entry Per Unit Cost Market Record LCM adjustment. 169 112 331 Journal entry worksheet 93 114 Note: Enter debits before credits. 117 120 114 61 159 102 341 103 124 Cost Clear entry Total General Journal Market LCM applied to: Debit Individual Items Credit View general journal
Transcribed Image Text:Required 1 Required 2 Compute the lower of cost or market for the inventory applied separately to each item. Car audio equipment Speakers Stereos Amplifiers Subwoofers .. Item Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers Total Show Transcribed Text View transaction list < Units 1 Date December 31 489 300 221 354 $ 109 $ 269 130 335 105 213 71 194 179 Record entry Per Unit Cost Market Record LCM adjustment. 169 112 331 Journal entry worksheet 93 114 Note: Enter debits before credits. 117 120 114 61 159 102 341 103 124 Cost Clear entry Total General Journal Market LCM applied to: Debit Individual Items Credit View general journal
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