Calculate the Lower-of-Cost-or-Market using the table below for Samson Goods, Inc. springs inventory. (1) Complete the table.
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Question:
Calculate the Lower-of-Cost-or-Market using the table below for Samson Goods, Inc. springs inventory.
(1) Complete the table.
| Part # | Cost | Replacement Cost | Net Realizable Value | Normal Profit | NRV less Normal Profit | LCM |
| SP17G | $181,000 | $ 152,000 | $151,000 | $15,000 | ||
| SP23X | 254,000 | 249,800 | 262,500 | 27,800 | ||
| SP78A | 210,000 | 214,000 | 206,000 | 19,200 | ||
| Total |
(2) Prepare the journal entry to record the Allowance to Reduce Inventory to Market using the "Loss Method".
Expert Answer:
Stepbystep explanation 1 Completed Table the amounts in bold are the market values Guide Under the lower of cost or market method of measuring invento... View the full answer
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