a Peterson funniture DeSignsPreparingSthe annval fanacia Staterntsdated clecepmber 31. Endling inventory infomation abovt the Ave major temsStscked for requ lar Sale follaSComplete the two colmns(メけ)Malket ValeZecordedtstal CostLcm Per itemPvanity an hand Unit Co +when oquredItemArmare sat Year end31R00503C 31300 01800Bureavs75625 5Crcdenzas30Cabs55553025Dressers15,4o04403 S32bConmarte the amont that Shovld be reparted for the endlinginverrby USs the LCM vle apphed to each itemEndins inventsy

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Asked Oct 13, 2019
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a Peterson funniture DeSigns
Preparing
S
the annval fanacia Staternts
dated clecepmber 31. Endling inventory infomation abovt the Ave major tems
Stscked for requ lar Sale follaS
Complete the two colmns
(メけ)
Malket Vale
Zecorded
tstal Cost
Lcm Per item
Pvanity an hand Unit Co +
when oqured
Item
Armare s
at Year end
31R00
50
3C 31
300 0
1800
Bureavs
75
62
5 5
Crcdenzas
30
Cabs
55
55
3025
Dressers
15,4o0
440
3 S
32
bConmarte the amont that Shovld be reparted for the endling
inverrby USs the LCM vle apphed to each item
Endins inventsy
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a Peterson funniture DeSigns Preparing S the annval fanacia Staternts dated clecepmber 31. Endling inventory infomation abovt the Ave major tems Stscked for requ lar Sale follaS Complete the two colmns (メけ) Malket Vale Zecorded tstal Cost Lcm Per item Pvanity an hand Unit Co + when oqured Item Armare s at Year end 31R00 50 3C 31 300 0 1800 Bureavs 75 62 5 5 Crcdenzas 30 Cabs 55 55 3025 Dressers 15,4o0 440 3 S 32 bConmarte the amont that Shovld be reparted for the endling inverrby USs the LCM vle apphed to each item Endins inventsy

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Expert Answer

Step 1

Lower of cost or Market (LCM): Lower of cost or market is a method used for valuing inventory for reporting purpose. Generally, inventory is valued at historical cost. If net realizable value of inventory is less than cost of inventory. Then, inventory is reported at lower of cost or market value.

Step 2

a. Prepare a table for five major items of ending invento...

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В с D Е F G н Unit cost when Market Total Recorded Quantity acquired value at LCM per on hand (FIFO)year end Item item LCM total cost $1,800 S3,000 S1,800 $31 6 Armares 50 $36 S31 $1,550 S3,000 $1,800 $3,025 $32 $14,080 $40 7 Bureaus 75 $40 $40 $60 8 Credenzas 30 $62 $60 $55 $55 9 Cribs 55 $55 $3,025 $15,400 440 $35 10 Dresses $32 Calculation formulas: с Unit cost В D Е F G н when Market Quantity cquired value at Recorded total cost -C6*F6 | 1800 C7*F7 |3000 1800 |3025 =IF(D10>E10,E 10,D 10)C10*F10 15400 Total LCM per item |=IF(D6>E6.E6.D6) |=IF(D7>E7.E7_D7) |=IF(D8>E8,E8_D8) =IF(D9>E9,E9_D9) (FIFO year end 36 40 60 55 35 Item 6 Armares 50 7 Bureaus 5 on hand LCM 31 75 8 Credenzas 30 55 40 62 CS*F8 C9 F9 9 Cribs 10 Dresses 55 32 440

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