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 9Explanation / 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
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