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A physical inventory of Helmke Company taken at December 31 reveals the following.
Item Units Cost Market
Audio equipment
Receivers 335 $90 $98
CD players 250 111 100
Mp3 players 316 86 95
Speakers 194 52 41
Video equipment
Handheld LCDs 470 150 125
VCRs 281 93 84
Camcorders 202 310 322
Car audio equipment
Satellite radios 175 70 84
CD/MP3 radios 160 97 105
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.

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  • Category:- Accounting Basics
  • Reference No.:- M9412247

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