Ames Trading Co. has the following products in its ending inventory.Market per Unit$ 550QuantityCost per Unit$ 60035eProductMountain bikes11Skateboards13425Gliders26800700Compute lower of cost or market for inventory applied separately to each product.Per UnitTotalLCM applied toInventory ItemsUnitsCostMarketCostMarketeach productMountain bikes2$$SkateboardsGliders24< Prev9 of 18Next >

In this question, we have to compute the lcm applied for each product.

Answered: Ames Trading Co. has the following…

Ames Trading Co. has the following products in its Quantity Cost per Unit $ 600 Product Mountain bikes 11 Skateboards 13 350 Gliders 26 800

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 56E: Lower of Cost or Market Merediths Appliance Store has the following data for the items in its...

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Question

Ames Trading Co. has the following products in its ending inventory.
Market per Unit
$ 550
Quantity
Cost per Unit
$ 600
35e
Product
Mountain bikes
11
Skateboards
13
425
Gliders
26
800
700
Compute lower of cost or market for inventory applied separately to each product.
Per Unit
Total
LCM applied to
Inventory Items
Units
Cost
Market
Cost
Market
each product
Mountain bikes
2$
$
Skateboards
Gliders
24
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