Use the same information from E10- 11 now assuming that Print-master Distributors Company is an IFRS reporter.
Required
a. Conduct a lower- of- cost- or- market test for Printmaster, assuming it uses the individual- item approach for LCM computations.
b. Conduct a lower- of- cost- or- market test for Printmaster, assuming it uses the group- by- group approach for LCM computations.
c. Prepare the journal entry needed to adjust Printmaster’s inventory to a lower- of- cost- or- market (LCM) basis assuming that LCM is applied to individual items. Printmaster uses the indirect approach to record any adjustments to LCM.
d. Assume in the following year that Printmaster has 1,000 units of BT100 Black Toner still in its inventory. The selling price has increased to $ 58 dollars. Prepare the journal entry needed to adjust Printmaster’s inventory for any reversal of its lower- of- cost- or- market adjustment.