A physical inventory of Liverpool Company taken at December 31 reveals the following.          Per Unit Item Units Cost Market Car audio equipment               Speakers 350 $ 105   $ 113   Stereos 265   126     116   Amplifiers 331   101     110   Subwoofers 209   67     57   Security equipment               Alarms 485   165     155   Locks 296   108     98   Cameras 217   327     337   Binocular equipment               Tripods 190   89     99   Stabilizers 175   110     120      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.

Q: Blossom Camera Shop Inc. uses the lower-of-cost-or-net realizable value basis for its inventory. The…

A: Inventory refers to the goods or items which are stored by the business either for selling or for…

Q: Monty Camera Shop Inc. uses the lower-of-cost-or-net realizable value basis for its inventory. The…

A: item  units  unit cost  net realizable value  ending inventory (lower of cost or net realizable…

Q: As a result of a thorough physical inventory, Hastings Company determined that it had inventory…

A: Inventory: Inventory is a physical item of trade sold by suppliers during their accounting period.…

Q: Pharoah Camera Shop Inc. uses the lower-of-cost-or-net realizable value basis for its inventory. The…

A: Lower of cost or net realizable value is the method to calculate the ending inventory balance. It is…

Q: The Vogelson Company accumulates the following cost and net realizable value data at December 31.…

A: Inventories should be valued at cost or net realizable value whichever is lower. The cost or Net…

Q: Bramble Corp. uses the lower-of-cost-or-net realizable value basis for its inventory. The following…

A: Closing inventory: It is the amount of inventory that remains with the company at the end of the…

Q: a. Determine the ending inventory under the conventional retail method for the furniture department…

A:

Q: $155    Canon   7   147   149 Light Meters

A: Following the conservatism principle, value of assets in balance sheet is entered at cost or net…

Q: Harry Company sells a new product. During a move to a new location, the inventory records for the…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Central Appliance Center accumulates the following cost and net realizable value data at December…

A: Stock is to be valued at cost or net realizable value which every is lower. Prudence concepts says…

Q: A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item…

A: Journal: Recording of a business transactions in a chronological order.

Q: Brocken Co. has the following data related to an item of inventory: Inventory, May 1 3,000 units (@…

A: From the given information, Number of units sold = Opening inventory+Purchases-Closing inventory…

Q: The following information was available from the inventory records of Apollo Company for January:…

A: Formula: Inventory value at year end = No. of units in ending inventory x Average cost per unit…

Q: Bramble Company just took its physical inventory. The count of inventory items on hand at the…

A: Inventory is: An asset Used to generate revenue or has a monetary worth, or An asset that is in…

Q: Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand…

A: Lets understand the basics. When inventory sent on consignment basis then inventory needs to be…

Q: Wildhorse Co. accumulates the following cost and market data at December 31. Inventory Categories…

A: Lets understand the basics. As per IAS 2 "Inventory, inventory should be valued at lower of cost or…

Q: Green Leaf Company had the following information available on December 31:   Item #Units Cost…

A: Given, Category 1 Category 2  Wheelbarrows  Shovels  Hoses  Gloves

Q: Compute the correct December 31 inventory.

A: Inventory cost flow methods: These are the methods used by the companies to compute the cost…

Q: A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item…

A: Lets understand the basics. As per IAS 2 "Inventory", inventory needs to book at the year end at…

Q: Coronado Camera Shop Inc. uses the lower-of-cost-or-net realizable value basis for its inventory.…

A: Lower-of-cost-or-net realizable = Lower of cost and Net realizable value where, Net realizable value…

Q: Lower of Cost and Net Realizable Value Meredith's Appliance Store has the following data for the…

A: Inventory is valued at cost or net realizable value which ever is lower.

Q: Inventory information for Part 311 of Blossom Corp. discloses the following information for the…

A: The LIFO method is one of the inventory valuation methods which is working on the flow of inventory.…

Q: The GMA corporation shows the following data related to an item of Inventory Inventory, January 1…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

Q: physical inventory of Liverpool Company taken at December 31 reveals the following.

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: The September 30 inventory at Liverpool Piano Repair was $43,750 at cost and $62,500 at retail.…

A: “Hello, since you have posted multiple questions. We will solve first question for you. Please…

Q: Home Stop sells two product categories, furniture and accessories. Information pertaining to its…

A: Solution: Under lower of cost or market (LCM) rule, cost of inventory and market value of inventory…

Q: Crimson reported inventory amounting to P1,727,500 in its December 31, 2022 statement of financial…

A:

Q: Whispering Winds Company's inventory records show the following data for the month of September:…

A: Units available for sale = 105 + 440 + 300 = 845 units Units in ending inventory = 150 units Units…

Q: ,000 on consignment to Alissa Company. All of this inventory was at Alissa’s showrooms on December…

A: Consignor is the owner of the goods and the goods at consignee's showroom should be included in the…

Q: A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item…

A: INTRODUCTION LCM Method is lower of cost or market value method. It is the method of valuation of…

Q: Crimson reported inventory amounting to P1,727,500 in its December 31, 2022 statement of financial…

A: Computation of ending Raw material Raw material in warehouse +  Raw material in transit, FOB origin.…

Q: Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand…

A:

Q: Waterway Industries just took its physical inventory on December 31. The count of inventory items on…

A: Closing stock means that amount which has company right to use the stock for any purpose on the date…

Q: Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost…

A: Cost to retail ratio = Goods available for sale (before markdown) at cost / Goods available for sale…

Q: Bramble Company just took its physical inventory. The count of inventory items on hand at the…

A: Computation of correct inventory on December 31 Total Inventory cost-$350,000 1. Add Inventory sent…

Q: ABC Company uses the periodic inventory method and had the following inventory information…

A: Under average cost method, cost per unit is calculated as total cost of goods available for sale…

Q: Sheffield Corp. accumulates the following cost and market data at December 31. Inventory…

A: Under the lower-of-cost-or-net realizable value method, the lower amount is taken for the individual…

Q: The inventory records of Sixto Corp at Dec 31, 20X1 show a balance of P260,000. Also the following…

A: Inventory is one of the important current asset of the business. It includes inventory of raw…

Q: Shamrock, Inc. uses the lower-of-cost-or-market basis for its inventory. The following data are…

A: Lower-of-cost-or-market is one of the inventory valuation methods according to which inventory or…

Q: The following information on cost and net realizable value of Bramble Ltd's various inventory…

A: Lets understand the basics. As per IAS 2 "Inventory", inventory should be recoded at cost or NRV…

Q: Your review of Mine Company's inventory and related records for the year revealed the following…

A: Opening inventory (O) = 450000 Purchases (P) = 3150000 Sales = 4200000 Gross profit ratio = 30%…

Q: Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand…

A: Inventory: Inventory is the current asset account which includes all the costs incurred to acquire…

Q: 4. Talha Electronics Store has gathered the following information about inventory in their store as…

A: As per the lower of cost or market value method, we need to consider a lower rate of inventory from…

Q: XYZ Company uses the gross profit method to estimate ending inventory and cost of goods sold when…

A: Ans. There are various methods of calculating the ending inventory. One such method is using the…

Q: What is the Correct December 31 inventory amount ??   Bramble Company just took its physical…

A: The actual value of inventory includes the exact value of goods owned by the business.

Q: Concord Company just took its physical inventory. The count of inventory items on hand at the…

A: Consignor is the owner of the goods and the goods at consignee's showroom should be included in the…

Q: Assume the following data with regard to inventory for Caciato Company: Aug. 1 Inventory 40 units @…

A: The inventory valuation method would be considered as the one under which the cost of goods sold and…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.