Problem $\backslash$#$3-$ LCM $(25$ Points$)$

$-$ The Collins Company has five inventory items on hand at the end of the year.

$-$ The year$-$end selling prices, and estimated costs of completion, disposal, and transportation $($selling costs$)$ for each of the items are given below

$-$ The normal profit margin for each of the products is $\backslash (10\backslash \%\backslash )$ of the selling price

$-$ These amounts are used to calculate the ceiling and floor as follows:

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Items & $\backslash$begin$\{$tabular$\}\{$l$\}$

Selling $\backslash \backslash$

Price

$\backslash$end$\{$tabular$\}$ & $\backslash$multicolumn$\{2\}\{|$l$|\}\{\backslash$begin$\{$tabular$\}\{$l$\}$

Estimated $\backslash \backslash$

Selling Costs

$\backslash$end$\{$tabular$\}\}$ & NRV $($Ceiling$)$ & Normal Profit Margin $(10\backslash \%$ of Selling Price$)$ & NRV $-$ NPM $\backslash \backslash$

$\backslash$hline A & $\backslash$$ $50,000$ & $\backslash$$ & $7,500$ & & & $\backslash \backslash$

$\backslash$hline B & $\backslash$$ $60,000$ & $\backslash$$ & $15,000$ & & & $\backslash \backslash$

$\backslash$hline C & $\backslash$$ $45,000$ & $\backslash$$ & $7,500$ & & & $\backslash \backslash$

$\backslash$hline D & $\backslash$$ $50,000$ & $\backslash$$ & $7,500$ & & & $\backslash \backslash$

$\backslash$hline E & $\backslash$$ $55,000$ & $\backslash$$ & $7,000$ & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$-$ Additional information related to year$-$end inventory cost $($determined by applying the LIFO cost method$)$ and replacement cost are given below

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Items & Cost & & $\backslash$begin$\{$tabular$\}\{$l$\}$

cement $\backslash \backslash$

cost

$\backslash$end$\{$tabular$\}$ & NRV $($Ceiling$)$ & NRV$-$NPM & Market & LCM $\backslash \backslash$

$\backslash$hline A & $\backslash$$ $25,000$ & $\backslash$$ & $27,500$ & & & & $\backslash \backslash$

$\backslash$hline B & $\backslash$$ $50,000$ & $\backslash$$ & $48,500$ & & & & $\backslash \backslash$

$\backslash$hline C & $\backslash$$ $40,000$ & $\backslash$$ & $35,000$ & & & & $\backslash \backslash$

$\backslash$hline D & $\backslash$$ $45,000$ & $\backslash$$ & $47,500$ & & & & $\backslash \backslash$

$\backslash$hline E & $\backslash$$ $47,500$ & $\backslash$$ & $46,000$ & & & & $\backslash \backslash$

$\backslash$hline Total & $\backslash$$$207,500$ & & & & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

By Individual Items

Adjusting Entry

Inventory

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$ Inventory $\}\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$