Accounting
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9.
value:
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A physical inventory of Liverpool Company taken at December 31 reveals the following. |
| Per Unit | |||||
| Item | Units | Cost | Market | ||
| Audio equipment | |||||
| Receivers | 355 | $ | 110 | $ | 100 |
| CD players | 270 | 131 | 121 | ||
| MP3 players | 336 | 106 | 96 | ||
| Speakers | 214 | 51 | 62 | ||
| Video equipment | |||||
| Handheld LCDs | 490 | 135 | 160 | ||
| VCRs | 301 | 94 | 103 | ||
| Camcorders | 222 | 332 | 320 | ||
| Car audio equipment | |||||
| Satellite radios | 195 | 94 | 80 | ||
| CD/MP3 radios | 180 | 115 | 107 | ||
| 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. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) |
13 years ago
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