A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 335 $ 90 $ 98 Stereos 250 111 100 Amplifiers Subwoofers 316 86 95 194 52 41 Security equipment Alarms eBook 470 150 125 Locks Cameras Binocular equipment Tripods Stabilizers 281 93 84 Print 202 310 322 Terences 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 trhie 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 335 $ 90 $ 98 Stereos 250 111 100 Amplifiers Subwoofers 316 86 95 194 52 41 Security equipment Alarms eBook 470 150 125 Locks Cameras Binocular equipment Tripods Stabilizers 281 93 84 Print 202 310 322 Terences 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 trhie LCM adjustment to the Merchandise Inventory account.

Name: A physical inventory of Liverpool Company taken at December 31 reveal
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Description: A physical inventory of Liverpool Company taken at December 31 reveals the following.Per UnitMarketItemUnitsCostCar audio equipmentSpeakers$ 90$ 98100335Stereos250111ntsAmplifiersSubwoofersSecurity equipmentAlarms31686951945241eBook470150125Locks281

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 345 260 326 204 480 291 212 185 170 Per Unit Cost $ 90 111 86 52 150 93 310 70 97 Market $98 100 95 41 125 84 322 84 105 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.