A physical inventory of Office Necessities taken at December 31 reveals the following. Required 1. Compute the

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A physical inventory of Office Necessities taken at December 31 reveals the following.

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.

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Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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Question Posted: Nov 26, 2013 09:17 AM

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A physical inventory of Office Necessities taken at December 31 reveals the following. Required 1. Compute the

Question:

Per Unit Unlts Cost Item Office furniture Market Desks Credenzas Chairs Bookshelves 536 395 687 421 $261 227 49 93 $305 256 43 82 Filing cabinets Two-drawer Four-drawer Lateral 114 298 75 81 135 104 70 122 118 Office equipment Fax machines Copiers Telephones 370 475 302 168 317 125 200 288

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Per Unit Total Total LCM Applied Inventory Items Units Cost Market Cost Mar...View the full answer

Fundamental accounting principle

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