Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Per Unit Cost Inventory, by Product Category Furniture: Chairs Desks Tables Accessories: Rugs Lamps Product Furniture: Chairs Desks Tables Total Total furniture Accessories: Rugs Lamps Quantity Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement 1. 70 70 20 Complete this question by entering your answers in the tabs below. Total accessories 40 40 Required 1 Required 2 Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. Cost $29 77 88 64 26 Market $35 62 96 Market 52 22 < Required 1 Lower of cost or market By Individual By Product Products Categories Required 2 > By Total Inventory
Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Per Unit Cost Inventory, by Product Category Furniture: Chairs Desks Tables Accessories: Rugs Lamps Product Furniture: Chairs Desks Tables Total Total furniture Accessories: Rugs Lamps Quantity Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement 1. 70 70 20 Complete this question by entering your answers in the tabs below. Total accessories 40 40 Required 1 Required 2 Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. Cost $29 77 88 64 26 Market $35 62 96 Market 52 22 < Required 1 Lower of cost or market By Individual By Product Products Categories Required 2 > By Total Inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help with questions attached, thanks so much.
Transcribed Image Text:Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows:
Per Unit
Cost
Inventory,
by Product Category
Furniture:
Chairs
Desks
Tables
Accessories:
Rugs
Lamps
Required 1 Required 2
Product
Furniture:
Chairs
Desks
Tables
Total
Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual
products, (b) product categories, and (c) total inventory.
2. Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the
LCM applications in requirement 1.
Total furniture
Accessories:
Rugs
Lamps
Quantity
Complete this question by entering your answers in the tabs below.
70
70
20
Total accessories
40
40
Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a)
individual products, (b) product categories, and (c) total inventory.
Cost
$29
77
88
64
26
Market
$35
62
96
Market
52
22
< Required 1
Lower of cost or market
By Individual By Product
Products Categories
Required 2 >
By Total
Inventory
Transcribed Image Text:Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows:
Per Unit
Cost
Inventory,
by Product Category
Furniture:
Chairs
Desks
Tables
Accessories:
Rugs
Lamps
Quantity
70
70
20
40
40
$29
77
88
(a) Individual products
(b) Product categories
(c) Total inventory
64
26
Market
$35
62
96
Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual
products, (b) product categories, and (c) total inventory.
2. Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the
LCM applications in requirement 1.
52
22
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of
the LCM applications in requirement 1.
< Required 1
Required 2 >
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