All- Kinds- of- Cases Company sells cases for smart phones and notepad computers. All- Kinds- of- Cases groups inventory by the device manufacturer for which the case is made. All- Kinds- of- Cases provided the following information regarding inventory at the end of the current year.

Definitions:
CRC= Current Replacement Cost
SP= Selling price
DISPOSAL= Costs of Completion and Disposal
NPM= Normal profit Margin
Required
a. Conduct a lower- of- cost- or- market test for All- Kinds- of- Cases, assuming it uses the total inventory approach for LCM computations.
b. Conduct a lower- of- cost- or- market test for All-Kinds- of-Cases, assuming it uses the individual- item approach for LCM computations.
c. Conduct a lower- of- cost- or- market test for All- Kinds-of-Cases, assuming it uses the group- by- group approach for LCM computations.
d. Prepare the journal entry needed to adjust All- Kinds- of- Cases€™s inventory to a lower- of- cost- or- market (LCM) basis assuming that LCM is applied to total inventory groups. All- Kinds- of- Cases uses the indirect approach to record any adjustments to LCM.

Transcribed Image Text:

Group # Smart phone case General Tech Notepad case Smart phonecase Pacific Base Notepad case Manufacturer CRC #Of Units SP S14 35 Disposal NPM Cost 450 300 750 520 S 6 8 14 5 16 General Tech 2 2 2 18 Pacific Base 12 32 15 14