**Ames Trading Co. Inventory Analysis**Ames Trading Co. has a listing of products in its ending inventory as follows:1. **Mountain Bikes** - Quantity: 15 - Cost per Unit: $710 - Market per Unit: $6602. **Skateboards** - Quantity: 30 - Cost per Unit: $260 - Market per Unit: $2903. **Gliders** - Quantity: 29 - Cost per Unit: $810 - Market per Unit: $730**Objective:**Compute the lower of cost or market (LCM) for inventory. This will be applied separately to each product.**Table for Calculations:**| Inventory Items | Units | Per Unit Cost | Per Unit Market | Total Cost | Total Market | LCM Applied to Each Product ||-----------------|-------|---------------|-----------------|------------|--------------|-----------------------------|| Mountain Bikes | | | | | | || Skateboards | | | | | | || Gliders | | | | | | |**Instructions:**- Fill in each row with the appropriate calculations.- Determine the lower value between cost and market for each product, both on a per unit basis and total basis.- Record the LCM value for each product in the last column.

Name: **Ames Trading Co. Inventory Analysis**Ames Trading Co. has a listing
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Description: **Ames Trading Co. Inventory Analysis**Ames Trading Co. has a listing of products in its ending inventory as follows:1. **Mountain Bikes** - Quantity: 15 - Cost per Unit: $710 - Market per Unit: $6602. **Skateboards** - Quantity: 30 - Cost

The total cost of lower cost or market for inventory is calculated by adding the lower cost or market value of inventory for each product.

Answered: Ames Trading Co. has the following…

Business

Accounting

Ames Trading Co. has the following products in its ending inventory. Product Mountain bikes Skateboards Gliders Quantity Cost per Unit $710 260 810 Market per Unit $660 290 730 15 30 29

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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