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In: Accounting

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

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

Per Unit
Item Units Cost Market
Car audio equipment
Speakers 346 $ 101 $ 109
Stereos 261 122 112
Amplifiers 327 97 106
Subwoofers 205 63 53
Security equipment
Alarms 481 161 151
Locks 292 104 94
Cameras 213 323 333
Binocular equipment
Tripods 186 85 95
Stabilizers 171 106 116


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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Expert Solution

ekkarill92 answered 2 years ago
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