**Inventory Analysis for Liverpool Company**This exercise addresses inventory valuation using the Lower of Cost or Market (LCM) method, based on a physical inventory count at Liverpool Company as of December 31.**Inventory Details:**| Item | Units | Per Unit Cost | Per Unit Market ||------------------------------|-------|---------------|-----------------|| **Car Audio Equipment** | | | || - Speakers | 335 | $90 | $98 || - Stereos | 250 | $111 | $100 || - Amplifiers | 316 | $86 | $95 || - Subwoofers | 194 | $52 | $41 || **Security Equipment** | | | || - Alarms | 470 | $150 | $125 || - Locks | 281 | $93 | $84 || - Cameras | 202 | $310 | $322 || **Binocular Equipment** | | | || - Tripods | 175 | $70 | $84 || - Stabilizers | 160 | $97 | $105 |**Requirements:**1. Calculate the lower of cost or market for each inventory item.2. If the market value is less than the recorded cost, record the LCM adjustment to the Merchandise Inventory account.**Instructions:**- Enter your calculations in the corresponding tabs labeled "Required 1" and "Required 2".- Determine the LCM on a per unit basis and apply to the inventory account as required.This task involves assessing whether a reduction in the inventory value is necessary, impacting the financial statements to ensure that inventory is not overstated.

Name: **Inventory Analysis for Liverpool Company**This exercise addresses i
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: **Inventory Analysis for Liverpool Company**This exercise addresses inventory valuation using the Lower of Cost or Market (LCM) method, based on a physical inventory count at Liverpool Company as of December 31.**Inventory Details:**| Item

Journal: Recording of a business transactions in a chronological order.

Business

Accounting

A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers Stereos 335 $ 90 $ 98 250 111 100 Amplifiers Subwoofers 316 86 95 194 52 41 Security equipment Alarms Locks 470 150 125 281 93 84 Cameras 202 310 322 Binocular equipment Tripods Stabilizers 175 70 84 160 97 105 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.

A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers Stereos 335 $ 90 $ 98 250 111 100 Amplifiers Subwoofers 316 86 95 194 52 41 Security equipment Alarms Locks 470 150 125 281 93 84 Cameras 202 310 322 Binocular equipment Tripods Stabilizers 175 70 84 160 97 105 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

03:02:04 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 Required 1 No Units 1 336 251 317 195 Date 471 282 203 December 31 176 161 Per Unit Cost $.91 112 87 53 151 94 311 71 98 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. Market Complete this question by entering your answers in the tabs below. Required 2 If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. $.99 101 96 42 126 85 323 Cost of goods sold Merchandise inventory 85 106 Answer is complete but not entirely correct. < Required 1 General Joumal Required 2 ✔ Debit 266,419…
Vaughn Video Center accumulates the following cost and net realizable data at December 31. Inventory Categories Cameras Camcorders Blu-ray players Cost Data $13,100 9,800 14,200 Net Realizable Value Data $13,700 10,200 13,100 Compute the lower-of-cost-or-net realizable value valuation for the company's total inventory. The lower-of-cost-or-net realizable value $
Shamrock, Inc. uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31. Units Cost per Unit Market per Unit Cameras Minolta 5 $187 $173 Canon 7 160 170 Light Meters Vivitar 12 116 108 Kodak 10 114 125 What amount should be reported on Shamrock, Inc.’s financial statements, assuming the lower-of-cost-or-market rule is applied? Total $Enter a dollar amount that should be reported on Shamrock, Inc.’s financial statements
tem Units Cost Market Car audio equipment Speakers 335 $ 90 $ 98 Stereos 250 111 100 Amplifiers 316 86 95 Subwoofers 194 52 41 Security equipment Alarms 470 150 125 Locks 281 93 84 Cameras 202 310 322 Binocular equipment Tripods 175 70 84 Stabilizers 160 97 105 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.
Your answer is incorrect. Inventory data for Shamrock Company are reported as follows: Date Explanation Number of Units Unit Cost Total Cost June 1 Beginning inventory 370 $5 $1,850 CL Purchase 570 6 3,420 23 Purchase 470 7 Assume a sale of 610 units occurred on June 15 for a selling price of $8 and a sale of 530 units on June 27 for $9. On June 30, 270 units remain in inventory. Calculate the cost of ending inventory and cost of goods sold on June 30 under weighted average. (Round the weighted average cost per unit to 3 decimal places, eg. 5.271 and final answers to 2 decimal places, eg. 5,275.75.) Weighted Average Ending inventory $ 1,639.90 Cost of goods sold $ 6,924.80
13. Using the following information calculate the Cost of Goods Sold (COGS) and Ending Inventory (El) using the "FIFO Periodic/Perpetual" method. Beginning Inventory 2,400 units @$46 each Jan 5th Sold 2,000 units Jan 10th Purchased 4,000 units @, $50 Jan 15th Sold 3,500 units Jan 20th Purchased 2,000 units @$55 13. Using the facts from Problem #13, please calculate the COGS and El using the "LIFO Periodic" method. 13 Using the facts from Problem #13, please calculate the COGS and El using the "LIFO Perpetual" method. Note: This method requires a little more thought but is more in line with the actual events, in chronological order.
Bramble Corp. accumulates the following cost and net realizable value data on December 31. Inventory Categories Cost Data Net Realizable Value Cameras $ 10,280 $ 11,520 Camcorders 8,410 9,170 DVDs 11,570 10,430 Compute the lower-of-cost-or-net realizable value for the company's inventory. * SZILWELL 500X
Someone gave me this answer : cost of ending inventory : 26,300 Cost of goods sold: 36,370 And it is not correct
Given the following: Numberpurchased Costper unit Total January 1 inventory 32 $ 4 $ 128 April 1 52 6 312 June 1 42 7 294 November 1 47 8 376 173 $ 1,110 a. Calculate the cost of ending inventory using the FIFO (ending inventory shows 53 units). b. Calculate the cost of goods sold using the FIFO (ending inventory shows 53 units).
I need the answer as soon as possible
Per Unit Iten Unita Cont Market Car audio equipment Speakers Stereos 341 $.96 $104 256 117 106 Amplifiers 322 92 101 Subwoofers 200 58 47 Security equipment Alarma 476 156 131 Locks 207 99 90 Cameras 208 316 328 Binocular equipment Tripods 101 76 90 Stabilizers 166 103 111 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.