Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Inventory, Per Unit By Product Category Quantity Cost Market Furniture: Chairs 40 $40 $ 46 Desks 20 88 73 Tables 60 99 107 Accessories: Rugs 30 75 63 Lamps 60 37 33 Required: 1.Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2.Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement 1. Complete this question by entering your answers in the tabs below. Required 1: Lower of cost or market Product Cost Market By Individual By Product By Total Products Categories Inventory Furniture: Chairs ______ _______ _________ Desks _______ ________ _________ Tables _______ ________ _________ Total Furniture Accessories: Rugs ______ ________ _________ Lamps _______ _________ _________ Total accessories Total _______ _________ __________ Required 2. Individual products ____________ Product categories ____________ Total inventory _______________
Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows:
Inventory, Per Unit
By Product Category Quantity Cost Market
Furniture:
Chairs 40 $40 $ 46
Desks 20 88 73
Tables 60 99 107
Accessories:
Rugs 30 75 63
Lamps 60 37 33
Required:
1.Determine the carrying value of inventory at year-end, assuming the lower of cost or market (LCM) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.
2.Assuming inventory write-downs are common for Home Stop, record any necessary year-end adjustment amount for each of the LCM applications in requirement 1.
Complete this question by entering your answers in the tabs below.
Required 1:
Lower of cost or market
Product Cost Market By Individual By Product By Total
Products Categories Inventory
Furniture:
Chairs ______ _______ _________
Desks _______ ________ _________
Tables _______ ________ _________
Total Furniture
Accessories:
Rugs ______ ________ _________
Lamps _______ _________ _________
Total accessories
Total _______ _________ __________
Required 2.
- Individual products ____________
- Product categories ____________
- Total inventory _______________
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