A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item...
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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. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 1 Required 2 Compute the lower of cost or market for the inventory applied separately to each item. Per Unit Total Item Units Cost Market Cost Market LCM applied to: Individual Items Car audio equipment Speakers 351 $ 106 $ 114 $ 37,206 $ 40,014 $ 0 Stereos 266 127 117 33,782 31,122 Amplifiers 332 102 111 33,864 36,852 0 Subwoofers 210 68 58 14,280 12,180 Security equipment Alarms 486 166 156 80,676 75,816 Locks 297 109 99 32,373 29,403 Cameras 218 328 338 71,504 73,684 0 Binocular equipment Tripods 191 90 100 17,190 19,100 0 Stabilizers 176 111 121 19,536 21,296 0 Total Journal entry worksheet > 1 Record LCM adjustment. Note: Enter debits before credits. Date December 31 General Journal Debit Credit 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. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 1 Required 2 Compute the lower of cost or market for the inventory applied separately to each item. Per Unit Total Item Units Cost Market Cost Market LCM applied to: Individual Items Car audio equipment Speakers 351 $ 106 $ 114 $ 37,206 $ 40,014 $ 0 Stereos 266 127 117 33,782 31,122 Amplifiers 332 102 111 33,864 36,852 0 Subwoofers 210 68 58 14,280 12,180 Security equipment Alarms 486 166 156 80,676 75,816 Locks 297 109 99 32,373 29,403 Cameras 218 328 338 71,504 73,684 0 Binocular equipment Tripods 191 90 100 17,190 19,100 0 Stabilizers 176 111 121 19,536 21,296 0 Total Journal entry worksheet > 1 Record LCM adjustment. Note: Enter debits before credits. Date December 31 General Journal Debit Credit
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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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