A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers Stereos $ 93 338 $ 101 253 114 103 Amplifiers Subwoofers Security equipment Alarms 319 89 98 197 55 44 473 153 128 Locks 284 96 87 Cameras Binocular equipment Tripods Stabilizers 205 313 325 178 73 87 163 100 108 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. Per Unit Item Units Cost Market Car audio equipment Speakers Stereos $ 93 338 $ 101 253 114 103 Amplifiers Subwoofers Security equipment Alarms 319 89 98 197 55 44 473 153 128 Locks 284 96 87 Cameras Binocular equipment Tripods Stabilizers 205 313 325 178 73 87 163 100 108 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.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.12E: Qualcomm Incorporated (QCOM) is a leading developer and manufacturer of digital wireless...
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