At the end of the Year, COVID hits and the market for retail clothing plummets. Chicago...

 

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At the end of the Year, COVID hits and the market for retail clothing plummets. Chicago Styles performs an evaluation of their inventory and finds the following (*Note, the following numbers are independent of the ones above): Quantity Cost/Unit Item Shoes Hats Pants Shirts 60 50 55 50 $50 $45 $40 $35 Market Value / Unit $55 $60 $35 $40 If the Company applies Lower of Cost or Market (LCM) to Each Item in inventory, what would be the journal entry the company would make at the end of the year to adjust the inventory. www. At the end of the Year, COVID hits and the market for retail clothing plummets. Chicago Styles performs an evaluation of their inventory and finds the following (*Note, the following numbers are independent of the ones above): Quantity Cost/Unit Item Shoes Hats Pants Shirts 60 50 55 50 $50 $45 $40 $35 Market Value / Unit $55 $60 $35 $40 If the Company applies Lower of Cost or Market (LCM) to Each Item in inventory, what would be the journal entry the company would make at the end of the year to adjust the inventory. www.

Answer rating: 100% (QA)

The Lower of Cost or Market LCM rule requires the company to adjust its inventory to its market valu... View the full answer