# All- Kinds- of- Cases Company sells cases for smart phones and notepad computers. All- Kinds- of- Cases groups inventory by

## Question:

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.

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**Related Book For**

## Intermediate Accounting

**ISBN:** 978-0132162302

1st edition

**Authors:** Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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