physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 351 $ 106 $ 114 Stereos 266 127 117 Amplifiers 332 102 111 Subwoofers 210 68 58 Security equipment Alarms 486 166 156 Locks 297 109 99 Cameras 218 328 338 Binocular equipment Tripods 191 90 100 Stabilizers 176 111 121 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.
physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 351 $ 106 $ 114 Stereos 266 127 117 Amplifiers 332 102 111 Subwoofers 210 68 58 Security equipment Alarms 486 166 156 Locks 297 109 99 Cameras 218 328 338 Binocular equipment Tripods 191 90 100 Stabilizers 176 111 121 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A physical inventory of Liverpool Company taken at December 31 reveals the following.
| Per Unit | |||||||
| Item | Units | Cost | Market | ||||
| Car audio equipment | |||||||
| Speakers | 351 | $ | 106 | $ | 114 | ||
| Stereos | 266 | 127 | 117 | ||||
| Amplifiers | 332 | 102 | 111 | ||||
| Subwoofers | 210 | 68 | 58 | ||||
| Security equipment | |||||||
| Alarms | 486 | 166 | 156 | ||||
| Locks | 297 | 109 | 99 | ||||
| Cameras | 218 | 328 | 338 | ||||
| Binocular equipment | |||||||
| Tripods | 191 | 90 | 100 | ||||
| Stabilizers | 176 | 111 | 121 | ||||
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.
Calculate the lower of cost or market for the inventory applied separately to each item.
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