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Help A physical inventory of Liverpool Company taken at December 31 reveals the

ID: 2566679 • Letter: H

Question

Help A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Units Cost Market Car audio equipment Speakers Stereos Amplifiers Subwoofers 342 $ 97 $105 257 118 107 323 93 102 201 59 4 Security equipment Alarms Locks Cameras 477 157 132 288 10o 91 209 317 329 Binocular equipment Tripods Stabilizers 182 77 91 167 104 112 Required: 1. Calculate the lower of cost or market for the inventory applied separately to each item 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account Complete this questions by entering your answers in the tabs below. Prev 9 of 9

Explanation / Answer

Units

Cost per Unit

Total Cost

Market Value per Unit

Total Market Value

Lower of Cost or Market Value

Car Audio Equipment

Speakers

342

97

33174

105

35910

33174

Stereos

257

118

30326

107

27499

27499

Amplifiers

323

93

30039

102

32946

30039

Subwoofers

201

59

11859

48

9648

9648

Security Equipment

Alarms

477

157

74889

132

62964

62964

Locks

288

100

28800

91

26208

26208

Cameras

209

317

66253

329

68761

66253

Binocular Equipment

Tripods

182

77

14014

91

16562

14014

Stabilizers

167

104

17368

112

18704

17368

306722

299202

287167

Answer to Part 2

Date

Accounts title and explanation

Debit

Credit

Cost of goods Sold (306722 - 287167)

19555

Merchandise Inventory

19555

Units

Cost per Unit

Total Cost

Market Value per Unit

Total Market Value

Lower of Cost or Market Value

Car Audio Equipment

Speakers

342

97

33174

105

35910

33174

Stereos

257

118

30326

107

27499

27499

Amplifiers

323

93

30039

102

32946

30039

Subwoofers

201

59

11859

48

9648

9648

Security Equipment

Alarms

477

157

74889

132

62964

62964

Locks

288

100

28800

91

26208

26208

Cameras

209

317

66253

329

68761

66253

Binocular Equipment

Tripods

182

77

14014

91

16562

14014

Stabilizers

167

104

17368

112

18704

17368

306722

299202

287167